The Federal Deposit Insurance Corp. or FDIC, which is acting as the receiver of collapsed Silicon Valley Bank, Monday said it has taken action to protect all depositors of the Santa Clara, California-based bank.
The FDIC has transferred the bank's all deposits, both insured and uninsured, and substantially all assets to a newly created, full-service FDIC-operated 'bridge bank', Silicon Valley Bank, N.A. A bridge bank is a a chartered national bank that operates under a board appointed by the FDIC.
Tim Mayopoulos was named CEO of Silicon Valley Bank, N.A. He is former president and CEO of the Federal National Mortgage Association and most recently served as president of Blend Labs, Inc.
Depositors will have full access to their money beginning this morning, when Silicon Valley Bank, N.A., the bridge bank, opens and resumes normal banking hours and activities, including online banking.
Depositors and borrowers will automatically become customers of Silicon Valley Bank, N.A. and will have customer service and access to their funds by ATM, debit cards, and writing checks in the same manner as before.
Silicon Valley Bank's official checks will continue to clear. Loan customers should continue making loan payments as usual.
Silicon Valley Bank was closed by the California Department of Financial Protection and Innovation on last Friday and the FDIC was appointed receiver.
The FDIC noted that the transfer of all the deposits was completed under the systemic risk exception approved on Sunday. All depositors of the institution will be made whole. No losses associated with the resolution of Silicon Valley Bank will be borne by taxpayers.
The receiver for Silicon Valley Bank has also transferred all Qualified Financial Contracts of the failed bank to the bridge bank.
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