Regulators Shut Down Silicon Valley Bank, FDIC Safeguards Insured Deposits
Staff Editor On Friday, Silicon Valley Bank was shut down by regulators to protect insured deposits. The tech-focused bank had been attempting to raise more capital but ultimately failed in its efforts.
The Federal Deposit Insurance Corporation (FDIC) took control of the bank and appointed a receiver for the purpose of liquidating assets and distributing them among creditors. Customers with accounts at Silicon Valley Bank should not be concerned as all deposits up to $250,000 are protected under FDIC insurance regulations.
It is unclear what caused Silicon Valley Bank’s failure or why it could not secure additional capital, however, this closure serves as yet another reminder that even banks backed by large companies can suffer from financial difficulties if they do not maintain proper oversight and management practices. It also highlights how important it is for customers to pay attention when selecting a financial institution since their money may be at risk if something goes wrong with the company they have chosen.
Read more at CNBC
