California Gov. Gavin Newsom says he is working with the Federal Deposit Insurance Corporation and the White House after the Silicon Valley bank was shut down by regulators on Friday.
“For the past 48 hours, I have been in contact with the highest levels of leadership at the White House and Treasury Department. Everyone is working with the FDIC to stabilize the situation as quickly as possible to protect jobs, people’s livelihoods and the entire innovative ecosystem that has served as a tent pole for our economy,” Newsom said Saturday.
The FDIC said in a news release Friday that the SVP was closed by the California Department of Financial Protection and Innovation, which designated the FDIC as the bank’s recipient of insured deposits.
SVB serves the venture capital community with 17 offices in California and Massachusetts.
SILICON VALLEY BANK CLOSED BY REGULATORS
The bank was the 16th largest bank in the United States and is the second largest bank in the United States to close since 2008.
Other bank stocks were volatile on Friday as a result of the shutdown of SVB by regulators.
US REGULATORS WARN BANKS OF INCREASED LIQUIDITY RISKS IN CRYPTO-RELATED DEPOSITS
The FDIC covers bank accounts up to $250,000 and said Friday depositors within the SVP would regain access to accounts by Monday morning.
It states that uninsured depositors “will receive an advance dividend within the next week.”
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However, the amount of deposits in excess of the FDIC insurance limit has not been determined.
FOX Business’ Breck Dumas contributed to this report.