Troubled lender Silicon Valley Bank has been closed by the FDIC after deposit outflows and a failed capital raise sent the firm into crisis this week.
In a statement released late Friday morning, the FDIC said: “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.”
Editor: Is this 2008 all over again? Is this our Lehman Brothers moment, circa 2023?