Customers make massive withdrawals after big asset losses.
The Federal Deposit Insurance Corporation and the California Department of Financial Protection and Innovation shut down the Silicon Valley Bank after mass customer withdrawals caused the bank’s stock to drop 60 percent Thursday and 62 percent in premarket trading Friday.
The remaining insured deposits have been transferred by the FDIC to the Deposit Insurance National Bank of Santa Clara. That group will reopen the Silicon Valley offices on March 13 so that banking activities may resume.
Customers had lost confidence in the bank after it reported a $1.8 billion loss in assets due to rising interest rates.
Officials expect the Silicon Valley Bank collapse will be felt across the tech industry.
As the Lord Leads, Pray with Us…
- For Chairman Martin Gruenberg as he oversees the FDIC Board.
- For banking officials as they manage the transactions of the failed bank.
Sources: Wall Street Journal, Daily Caller
