The Silicon Valley Bank was shut down by regulators on Friday
California Gov. Gavin Newsom says he is working with the Federal Deposit Insurance Corporation and the White House following the regulatory shutdown of Silicon Valley Bank on Friday.
“Over the past 48 hours, I have been in touch with the top leadership of the White House and the Treasury Department. Everyone is working with the FDIC to stabilize the situation as quickly as possible, protect jobs, people’s livelihoods and all innovation. ecosystem that has been the backbone of our economy,” Newsom said on Saturday.
The FDIC said in a press release on Friday that SVB has been closed by the California Department of Financial Protection and Innovation, which has designated FDIC as the recipient of the bank’s insured deposits.
SVB serves the venture capital community and has 17 branches in California and Massachusetts.
BANK OF SILICONE VALLEY IS CLOSED BY REGULATORS
The bank was the 16th largest bank in the United States and the second largest bank in the United States, having closed since 2008.
As a result of regulators shutting down SVB, shares of other banks were volatile on Friday.
US REGULATORS WARN BANKS OF INCREASED LIQUIDITY RISK IN CRYPTO DEPOSITS
The FDIC covers bank accounts up to $250,000 and said on Friday that SVP savers will regain account access by Monday morning.
It states that uninsured savers will receive “an upfront dividend within the next week.”
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However, the amount of deposits that exceed the FDIC insurance limit has not been determined.
Brec Dumas of FOX Business contributed to this report.
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