• News
    • Latest News
    • Press Releases
  • Markets
  • Articles
    • Opinion
    • Explainers
    • Guest Posts
    • Sponsored Posts
  • Policy
  • Videos
  • Podcasts
  • Learn
    • DeFi Basics
    • Blockchain Fundamentals
    • Tutorials
    • Reviews
  • Research
    • Case Studies
  • Explore
    • NFTs
    • DAOs
    • Crypto Gaming
    • Metaverses
    • Web3
    • Stablecoins
    • CBDCs
    • DeFi
  • Markets Pro
    • Swap Crypto
    • DeFi Planet Pro
    • Coin Prices
    • Crypto Exchanges
    • Crypto Analyzer
No Result
View All Result
DeFi Planet
  • News
    • Latest News
    • Press Releases
  • Markets
  • Articles
    • Opinion
    • Explainers
    • Guest Posts
    • Sponsored Posts
  • Policy
  • Videos
  • Podcasts
  • Learn
    • DeFi Basics
    • Blockchain Fundamentals
    • Tutorials
    • Reviews
  • Research
    • Case Studies
  • Explore
    • NFTs
    • DAOs
    • Crypto Gaming
    • Metaverses
    • Web3
    • Stablecoins
    • CBDCs
    • DeFi
  • Markets Pro
    • Swap Crypto
    • DeFi Planet Pro
    • Coin Prices
    • Crypto Exchanges
    • Crypto Analyzer
No Result
View All Result
DeFi Planet
No Result
View All Result
Home News Latest News

California Financial Regulators Shut Down Silicon Valley Bank

The closure of SVB has created a ripple effect throughout the business community

10 March 2023
in Latest News, News, Policy
Reading Time: 3 mins read
109 1
California Financial Regulators Shut Down Silicon Valley Bank

Image source: bbc.com

Silicon Valley Bank (SVB), a significant financial institution that caters to venture-backed businesses in California, was closed down by the state’s financial regulators on March 10, 2023.

This incident is being described as the second-largest failure of a financial institution in US history, following a 48-hour bank run and a capital crisis. SVB is the first insured bank to collapse this year, marking a significant event in the financial sector.

The closure of SVB has created a ripple effect throughout the business community, particularly among venture-backed startups that relied on the bank’s services. This event has raised concerns among entrepreneurs who fear they will struggle to obtain funding for their businesses in the future.

The California Department of Financial Protection and Innovation ordered Silicon Valley Bank to cease operations and appointed the FDIC as the receiver to protect insured savings. However, no reason was given for the shutdown order, leaving many companies and individuals uncertain about the fate of their funds in the bank’s custody.

According to a report by the regulator, all insured depositors will have full access to their insured deposits by Monday morning, March 13, 2023. Uninsured depositors will receive an advance dividend payment within the next week and a receivership certificate for their uninsured funds balance. In addition, the FDIC may offer future dividend payments to uninsured depositors as it sells off Silicon Valley Bank’s assets.

Starting March 13, all 17 branches of Silicon Valley Bank in Massachusetts and California, including the main office, will be open to depositors. As of December 31, 2022, Silicon Valley Bank’s total assets were approximately $209.0 billion, while its total deposits were around $175.4 billion. 

It is currently unclear how much the total uninsured deposits exceeded the insurance limitations. However, the FDIC will determine the precise amount of uninsured deposits once it receives additional information from the bank and its clients. Clients with accounts worth more than $250,000 are advised to contact the FDIC.

The fall of Silicon Valley Bank, one of the top 20 banks in the US in terms of total assets, was swift, occurring within 48 hours of management announcing a requirement of $2.25 billion in stock to sustain operations.

The bank had announced on March 8 that it was seeking more than $2 billion in additional capital after incurring a $1.8 billion loss on asset sales. All efforts to raise capital had failed, so SVB had shifted its focus to a possible sale. However, the sale was complicated by a rapid outflow of deposits.

The bank was well-known for providing financial services to certain entrepreneurial firms with a focus on cryptocurrencies.

 

If you would like to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram and CoinMarketCap Community.

“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”

Don't miss out!

Subscribe To Our Newsletter

Receive top education news, lesson ideas, teaching tips and more!
Invalid email address
Give it a try. You can unsubscribe at any time.
Thanks for subscribing!
Share64Tweet40Share11
Previous Post

U.S. Department of Justice Challenges Court Approval of Voyager’s Sale to Binance.US

Next Post

USDC Stablecoin Issuer, Circle, Exposed to Failed Banks Silicon Valley and Silvergate

Favour Udeo

Favour Udeo

Favour is a writer, who is interested in blockchain, DeFi, and Web3 in general. She finds machine learning and emerging technologies interesting.

Related Posts

France, Singapore, and Switzerland Test Cross-Border CBDCs in Project Mariana
CBDCs

France, Singapore, and Switzerland Test Cross-Border CBDCs in Project Mariana

28 September 2023

The Bank for International Settlements (BIS) and the central banks of France, Singapore, and Switzerland have completed a collaborative experimental test focused on cross-border trading and settlement involving wholesale central bank digital currencies (CBDCs). According to a report published...

Binance Asks Users to Convert Their EUR Balances to USDT After Paysafe Pullout
Latest News

Binance Asks Users to Convert Their EUR Balances to USDT After Paysafe Pullout

28 September 2023

Binance, on Thursday, September 28, 2023, announced that there would be a brief interruption of euro (EUR) payments due to Paysafe's unilateral decision "to stop processing EUR deposits" for the exchange's users.  The exchange stated that Paysafe users will...

Kraken Expands European Footprint with Licence Approvals in Spain and Ireland
News

Kraken Expands European Footprint with Licence Approvals in Spain and Ireland

27 September 2023

Popular cryptocurrency exchange Kraken has marked a significant stride in its European expansion drive. On September 26, 2023, the exchange announced that it had secured licencing approvals from the Central Bank of Ireland and the Bank of Spain. These...

Binance Exits the Russian Market, Returns to Full Operations in Belgium
Latest News

Binance Exits the Russian Market, Returns to Full Operations in Belgium

27 September 2023

Binance is bidding farewell to the Russian market, selling its business subsidiary in the nation to CommEX. While this exit process will unfold over the next year, Binance has assured its Russian users that their funds will remain unaffected....

Swap Crypto

Markets Update

PayPal USD Stablecoin: A Win For Ethereum Or A Return to Centralization?

2 months ago

Worldcoin (WLD) Price Surges on Launch, But Privacy Concerns Issues Cast Doubts

2 months ago

XRP Skyrockets as Ripple Scores Partial Victory In SEC Battle; What Next for US Crypto Regulation?

2 months ago

Bitcoin May Be on a Bullish Trend As Price Approaches the $26,800 Key Support Level

4 months ago

DOGE Hits $10B Market Cap; Community Criticizes New Twitter CEO Appointment

4 months ago

NFT Market in Q1 2023: A Tale of Strong Starts, Mixed Performances, and Shifting Market Dynamics

5 months ago
Read More

Spotlight

All about SolChicks

All about Algorand

All about Bitcoin

All about Goracle

Press Releases

Gora Network Launches Testnet on Arbitrum

Gora Network Launches Testnet on Arbitrum

byGuest Author
13 August 2023
0

...

Blockswap to Host Multichain ERC20 Side Event at ETHCC

Blockswap to Host Multichain ERC20 Side Event at ETHCC

byGuest Author
8 July 2023
0

...

Goracle’s $GORA Initial DEX Offering Is Live on DeFi planet

Goracle’s $GORA Initial DEX Offering Is Live!

byGuest Author
28 June 2023
0

...

BitMEX Introduces a New PnL Realisation Feature for More Capital-Efficient Cross-Margining

BitMEX Introduces a New PnL Realization Feature

byGuest Author
13 April 2023
0

...

BitMEX Joins TRUST Protocol to Expand Travel Rule Compliance Capabilities, Aims to Adapt Swiftly in an Evolving Landscape

BitMEX Joins TRUST Protocol to Expand Travel Rule Compliance Capabilities

byGuest Author
13 April 2023
0

...

Read More
  • About Us
  • The Team
  • Careers
  • Contact
  • Partnerships

© Copyright 2023 DeFi Planet   |   Terms & Conditions   |   Privacy Policy

No Result
View All Result
  • News
    • Latest News
    • Press Releases
  • Markets
  • Articles
    • Opinion
    • Explainers
    • Guest Posts
    • Sponsored Posts
  • Policy
  • Videos
  • Podcasts
  • Learn
    • DeFi Basics
    • Blockchain Fundamentals
    • Tutorials
    • Reviews
  • Research
    • Case Studies
  • Explore
    • NFTs
    • DAOs
    • Crypto Gaming
    • Metaverses
    • Web3
    • Stablecoins
    • CBDCs
    • DeFi
  • Markets Pro
    • Swap Crypto
    • DeFi Planet Pro
    • Coin Prices
    • Crypto Exchanges
    • Crypto Analyzer

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Please enter and activate your license key for Cryptocurrency Widgets PRO plugin for unrestricted and full access of all premium features.

Add New Playlist

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?
-
00:00
00:00

Queue

Update Required Flash plugin
-
00:00
00:00