by Silicon Valley Bank customers were seen outside a location in Menlo Park, California, on Friday after the Federal Deposit Insurance Corporation seized their assets. (coin telegraph)
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 headquarters of Silicon Valley Bank in Santa Clara, California, U.S., on Friday March 10, 2023. Silicon Valley Bank became the biggest U.S. banking failure in more than a decade after its longstanding customer base was troubled and torn by tech startups became (Photographer: Philip Pacheco/Bloomberg via Getty Images/Getty Images)
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
California Gov. Gavin Newsom speaks during a news conference October 06, 2022 in San Francisco, California. (Photo by Justin Sullivan/Getty Images/Getty Images)
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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A customer stands outside a closed Silicon Valley Bank (SVB) headquarters in Santa Clara, California, March 10, 2023. Silicon Valley Bank was shut down by California regulators Friday morning and placed under the US Federal Depo (Justin Sullivan/Getty Images/Getty Images)
However, the amount of deposits in excess of the FDIC insurance limit has not been determined.
FOX Business’ Breck Dumas contributed to this report.
