US regulators shut down Silicon Valley Bank
US regulators announced on Friday that they had closed Silicon Valley Bank (SVB), one of the largest financial institutions in the country.
The Federal Deposit Insurance Corporation (FDIC) – an agency created by Congress to maintain stability and public confidence in the US financial system – has been named recipient, according to a statement.
“All insured depositors will have full access to their insured deposits through the morning of Monday, March 13, 2023,” the FDIC said.
Shares in the bank were halted on Friday after falling 66% in premarket trading.
SVB featured on a 2023 list of “America’s Best Banks” compiled by forbes business magazine, where it arrived in 20.
The FDIC said the bank is the first federally insured institution to fail since 2020.
The regulator said that, as of December 31, 2022, SVB had around $209.0 billion (€196 billion) in total assets and around $175.4 billion in total deposits.
Treasury Secretary Janet Yellen told lawmakers on Capitol Hill that her department was aware of developments and was monitoring the situation, calling it “a matter of concern” when banks suffer losses, CNBC reported.
kb/fb (Reuters, AFP)
Source: DW
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