TechFlow news – March 11 — According to Bloomberg, Silicon Valley Bank (SVB) has collapsed and been taken over by the U.S. Federal Deposit Insurance Corporation (FDIC). The California Department of Financial Protection and Innovation announced Friday that it had seized SVB and appointed the FDIC as receiver, citing insufficient liquidity and insolvency. The FDIC stated that insured depositors will have access to their funds by no later than Monday morning. Uninsured depositors will receive receivership certificates for the remaining balance of their uninsured funds, though the exact amount remains unclear. As the FDIC sells off SVB’s assets, dividends may be paid to uninsured depositors in the future. Earlier reports indicated that SVB Financial Group, the parent company of Silicon Valley Bank, sought to raise more than $2 billion after incurring significant losses in its investment portfolio. Founded in 1983, Silicon Valley Bank specialized in providing financial services to technology startups throughout its history. As of the end of last year, the bank held approximately $209 billion in total assets and about $175.4 billion in total deposits, according to the FDIC. The amount of deposits exceeding the insurance limit has not yet been determined. As receiver, the FDIC will retain all of SVB’s assets for future disposition. Loan customers should continue making payments as usual.Original link
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