Updated Mar 10, 2023, 12:09pm EST
North America

Silicon Valley Bank shut down by regulators

SVB (Silicon Valley Bank) logo is seen through broken glass in this illustration taken March 10, 2023.
REUTERS/Dado Ruvic/Illustration

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U.S. regulators have shut down the troubled Silicon Valley Bank, after the lender forecast higher-than-expected decline in deposits and lost $1.8 billion in bonds.

The California Department of Financial Protection and Innovation and FDIC closed the bank, transferring all insured deposits to a newly created deposit insurance entity. Customers with accounts in excess of $250,000 were urged to contact the FDIC.

Silicon Valley Bank pioneered the startup banking industry and claimed nearly half of all American venture-backed tech and life-sciences companies as clients.

Semafor reported Friday that tech industry founders got emails from their venture capital investors urging them to move their money out of the bank; SVB’s chief executive had told clients to “stay calm.”

The bank had 17 branches in California and Massachusetts; they are expected to reopen on Monday for customers to retain access to their insured funds.