Silicon Valley Bank, a major financial institution for venture-backed companies, was shut down by California’s financial watchdog on March 10 — marking the first FDIC-insured bank to fail in 2023.
The California Department of Financial Protection and Innovation confirmed that Silicon Valley Bank was ordered to close and that depositors “will have full access to their insured deposits no later than Monday morning, March 13, 2023.” The regulator explained that uninsured depositors will be given a “receivership certificate for the remaining amount of their uninsured funds” and entitled to future dividend payments once the Federal Deposit Insurance Corporation sells all of Silicon Valley Bank’s assets.
Silicon Valley Bank operates 17 branches across California and Massachusetts. All branches and its main office will be open on March 13 to facilitate depositor access.
This story is still in development and will be updated.