Silicon Valley Bank has been closed by the California Department of Financial Protection and Innovation, and the Federal Deposit Insurance Corporation (FDIC) has been appointed receiver, becoming the first FDIC-backed institution to fail this year. The news comes amid a crisis at parent SVB Financial Group SIVB, which lost a record 60% of its value on Thursday, after it disclosed large losses from securities sales and announced a dilutive stock offering along with a profit warning. The FDIC said all insured depositors will have full access to their accounts no later than Monday morning. Uninsured depositors will get a receivership certificate and may be entitled to dividends once the FDIC sells the bank’s assets. The bank had 13 branches in California and Massachusetts, which will reopen on Monday. The bank had about $209 billion in total assets as of Dec. 31, and about $175.4 billion in deposits. Customers with more than $250,000 in their accounts should contact the FDIC at 1-866-799-0959.
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