California regulators closed Silicon Valley Bank on Friday.
The FDIC was named receiver.
Via Market Watch:
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.
Silicon Valley Bank Collapses and Enters FDIC Receivership
Silicon Valley Bank collapsed into Federal Deposit Insurance Corp. receivership on Friday, after its long-established customer base of tech startups grew worried and yanked deposits.
The https://t.co/Si9k0vQ3RW… https://t.co/6HiqURIOcs pic.twitter.com/RgkHlh7lPc
— SANTINO (@MichaelSCollura) March 10, 2023
The bank reportedly holds $173 billion in deposits.
The company provided funding to 44% of all venture capital-backed tech and healthcare companies that publicly listed on a stock exchange last year, according to its website.
The CEO of Silicon Valley Bank Gregory Becker sold $3.5 million in stock in the last two weeks!
He was not alone.
Top Silicon Valley Bank executives also sold shares before the big crash on Thursday and Friday.
* Gregory Becker, CEO, sold 11% on Feb 27, 2023.
* Michael Zucker, General Counsel, 19% on Feb 5.
* Daniel Beck, CFO, sold 32% on Feb 27.
* Michelle Draper, CMO, sold 25% on Feb 1.
These executives all sold shares a bit at a time.
Via Unnamed Whales.
This is interesting.
Lehman Brothers collapsed in 2008.
It was part of the great financial crisis.
Silicon Valley Bank has now also collapsed, the largest bank since 2008.
Silicon Valley was the 16th largest bank in the US, holding $210 billion in assets.
Read more: https://t.co/SYf9Nq2PTr
— unusual_whales (@unusual_whales) March 11, 2023