The US deposit insurance company FDIC has taken control of Silicon Valley Bank.
The bank’s attempt to raise capital failed.
Previously, the bank is attempting to sell itself after failing to complete a $2.3 billion capital raise.
Silicon Valley Bank has not found a buyer. Now the US deposit insurance FDIC has taken control of the bank. The bank’s attempt to raise capital failed. To protect customers, all of the bank’s insured deposits have been transferred to a new special purpose entity.
Customers should have access to this money again by Monday morning at the latest. According to the FDIC, the bank had $209 billion in assets under management and approximately $175.4 billion in customer deposits at the end of December. It is initially unclear how much of this will be covered by the deposit insurance.
Shares in SVB Financial Group fell more than 60 percent on Thursday and Friday. The company then announced that it would stop trading. The sale of bonds worth 21 billion euros resulted in a loss of 1.8 billion euros that could not be offset.
SVB is a Santa Clara-based bank that lends money to and accepts deposits from Silicon Valley tech startups. The company website According to the report, the bank provided funding to 44 percent of all venture-backed technology and healthcare companies listed on a stock exchange last year.
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kh with material from the dpa