FDIC Orders Closure of Silicon Valley Bank, Largest Bank Failure Since 2008 Financial Crisis

Silicon Valley Bank, a major tech lender, was shut down on Friday by the Federal Deposit Insurance Corporation (FDIC). The bank had been facing sudden financial trouble, leading to a run on the bank by depositors, mostly technology workers and venture capital-backed companies.

At the end of last year, Silicon Valley Bank had $209 billion in total assets and $175 billion in total deposits, according to the FDIC. The closure marks the largest bank failure since Washington Mutual during the height of the 2008 financial crisis.

The FDIC ordered the closure of Silicon Valley Bank and immediately took possession of all deposits at the bank on Friday. All insured depositors will have “full access” to their insured deposits by no later than Monday morning, the FDIC said. The FDIC also said it will pay uninsured depositors an “advance dividend within the next week”.

The FDIC said it will use the services of a third-party asset manager to manage the assets of the failed bank. The FDIC said it will provide additional information on the resolution of Silicon Valley Bank as it becomes available.

Silicon Valley Bank’s sudden closure is a major blow to the tech industry, which had relied on the bank for lending and other services. It is unclear what the long-term implications of the bank’s closure will be for the tech industry.