WASHINGTON – Silicon Valley Bank, Santa Clara, California, was closed today by the California Department of Financial Protection and Innovation, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect insured depositors, the FDIC created the Deposit Insurance National Bank of Santa Clara (DINB). At the time of closing, the FDIC as receiver immediately transferred to the DINB all insured deposits of Silicon Valley Bank. All insured depositors will have full access to their insured deposits no later than Monday morning, March 13, 2023. The FDIC will pay uninsured depositors an advance dividend within the next week. Uninsured depositors will receive a receivership certificate for the remaining amount of their uninsured funds. As the FDIC sells the assets of Silicon Valley Bank, future dividend payments may be made to uninsured depositors. https://www.fdic.gov/news/press-releases/2023/pr23016.html
By "insured deposits" do they mean the 250k limit or can it be any amount (depending on how much the depositor chose to insure)
Yes and the ones over that are SOL
The one's over will be covered. Go read the FDIC Statement
Get ready for some companies payroll to fall through.
Wtf…
yikes. sounds like a huge wave of startup layoffs are on the horizon
If by layoffs you mean catastrophic implosions of those who had balances over 250k...
investors and founders still have a chance through M&A. anyone working there and/or holding ISOs is most fucked
All those +$250k deposits…poof.
Holy moly I did see this coming. ☠️ of start ups will begin soon. Reset of prices will happened by summer time.
VCs are about to watch lots of their startups belly up.
Wow!
This is bad unless someone thinks otherwise
It’s good for the banks that are considered too big to fail. People gonna be transferring money out of smaller banks real fast. But yeah this is bad for literally everyone else
Not necessarily bad for overall US economy. Def a correction to the COVID tech boom. Seems like Silicon Valley Bank ran out of talent when managing unprecedented gains from the COVID money printing run. Def bad for Bay Area mono-economy though
Brain trust of Silicon Valley.
I wonder how many MBAs from top tier schools they employed?