According to a CNBC report, Silicon Valley Bank was shut down by regulators on Friday after one of the biggest bank collapses in years. SVB is the 16th largest bank in the U.S. and is known for lending to startups.
From CNBC:
The California Department of Financial Protection and Innovation announced Friday that it was taking over and closing the distressed bank to protect deposits, naming the Federal Deposit Insurance Corporation as its receiver. The FDIC in turn formed a separate entity where all insured SVB deposits would be transferred.
The move came after a tumultuous morning during which trading of the bank’s shares was halted Friday after the stock fell by double-digits in pre-market trading, on the heels of a more than 60% decline Thursday.
Other bank stocks slipped in Thursday trading as well, underscoring investor worries about broader risks to the financial industry.
Concerns over a run at the Santa Clara, California-based bank, the 16th largest bank in the country, have led stock market investors to dump shares of other bank stocks as well. Jitters around SVB followed the news this week that Silvergate, a much smaller bank largely focused on the cryptocurrency industry, announced plans to shut down.
More over at CNBC:
BREAKING: Silicon Valley Bank is shut down by regulators, FDIC to protect insured deposits https://t.co/fW1tTq3EKD
— CNBC Now (@CNBCnow) March 10, 2023