In California, the largest bank to collapse in the US since the 2008 financial crisis, Silicon Valley Bank (SVB), has closed. It is reported by RIA Novosti with reference to the Federal Deposit Insurance Corporation.
“Silicon Valley Bank, Santa Clara, Calif., was closed today by the California Department of Financial Protection and Innovation, which has appointed the Federal Deposit Insurance Corporation as receiver,” the release said.
The FDIC transferred all insured deposits from SVB to a separate structure – Deposit Insurance National Bank of Santa Clara.
“All insured depositors will have full access to their insured deposits no later than Monday morning,” the corporation said.
SVB specialized in working with Silicon Valley startups. On March 8, the bank announced the sale of virtually all of its holdings and, after taxes, posted a loss of $1.8 billion.
An attempt to raise capital of two billion dollars the next day ended in failure. SVB shares collapsed by more than 60 percent, and on March 10, trading was suspended altogether. As a result, the US banking sector sank 6.5 percent on March 9, and 3.5 percent on March 10. After that, SVB hired consultants to explore the possibility of a sale.
Source: Rosbalt
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