Silicon Valley Bank Customers Can Fully Access Funds After FDIC Creates New Bridge Bank
Loans and other services will resume on normal schedule Monday following a switch to a new bridge bank, the regulator said
Depositors of Silicon Valley Bank will have full access to their money beginning Monday morning, the Federal Deposit Insurance Corp. said, after confirming a successful transfer of deposits to a new bridge bank.
The new bridge bank, called Silicon Valley Bank N.A., will be operated by the FDIC. It will have normal opening hours, and customers have been automatically switched, the regulator said in a statement on Monday.
“All depositors of the institution will be made whole,” the FDIC said. “No losses associated with the resolution of Silicon Valley Bank will be borne by taxpayers.”
The transfers were approved by banking regulators on Sunday, using provisions designed to protect the financial system from contagion, after the FDIC was appointed receiver of the failed bank on Friday.
The FDIC named former Fannie Mae CEO Tim Mayopoulos as CEO of the bridge bank.
UPDATE (Mar. 13, 10:40 UTC): Adds additional details.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.