Commercial banking company, Silicon Valley Bank on Friday morning collapsed after a stunning 48 hours in which its capital crisis set off fears of a meltdown across the banking industry.
So far, it has been recorded the largest shutdown of a US bank since 2008, when Washington Mutual fell during the financial crisis.
California regulators closed down the tech lender and put it in control of the US Federal Deposit Insurance Corporation. The FDIC is acting as a receiver, which typically means it will liquidate the bank’s assets to pay back its customers, including depositors and creditors. The FDIC is an independent government agency that insures bank deposits and oversees financial institutions, CNN reports.
Considering an option for depositors, the FDIC said all insured depositors will be paid an “advance dividend within the next week” and will have full access to their insured deposits by no later than Monday morning.
Interestingly, the bank, previously owned by SVB Financial Group, didn’t respond to CNN’s request for comment.
According to the FDIC, while relatively unknown outside of Silicon Valley, SVB was among the top 20 American commercial banks, with $209 billion in total assets at the end of last year.