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
Mar 13, 2023 at 10:33 a.m. UTC
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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.
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Jack Schickler was a CoinDesk reporter focused on crypto regulations, based in Brussels, Belgium. He doesn’t own any crypto.