Federal regulators shut down Silicon Valley Bank after it faced a sudden cash crunch.
Founded in 1983, the Santa Clara, Calif.-based institution provided banking services and took deposits for Silicon Valley startups, venture capital firms and tech heavyweights.
Shares of SVB Financial, the bank’s parent, had plunged by a whopping 60% on Thursday. The stock was down by another 60% in premarket trading Friday until being halted.What is Silicon Valley Bank? The firm’s website notes that SVB “bank[s] nearly half of all US venture-backed startups, and 44% of the US venture-backed technology and healthcare companies that went public in 2022 are SVB clients.”Who leads Silicon Valley Bank?
“To protect insured depositors, the FDIC created the Deposit Insurance National Bank of Santa Clara ,” the FDIC said in a statement. “At the time of closing, the FDIC as receiver immediately transferred to the DINB all insured deposits of Silicon Valley Bank.”
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