US: Silicon Valley Bank shut down

On Friday, US regulators shuttered Silicon Valley Bank as well as took over the control of its deposits. The 40-year-old Bank had become the second biggest rank casualty in the history of the United States as it was abruptly shut down on Friday, 10 March.

The move was taken by the California Department of Financial Protection and Innovation, which placed remaining assets of SVB under the Federal Deposit Insurance Corp.’s control. This move came into the lime-light hours after SVB’s finances went down at the warp speed after it was revealed that the bank is facing $1.8 billion loss on bond-holdings.

Earlier, on Thursday, during a conference call, the CEO Greg Becker has urged the investors to “stay calm,” and to not “panic.” As per the public filings, uninsured deposit, meanwhile totaled a whooping sum of $151 billion as of December 31.

Since the Almena State Bank’  crumble in 2020, it’s the first FDIC-insured institution to crumble. According to the agency, the SVB had around $209 billion in total assets last year and roughly $175.4 billion in total deposits.

As per the Federal Reserve, SVB ranked as the 16th largest bank in the United States.