On March 10, 2023, Silicon Valley Bank (SVB) was closed by the California Department of Financial Protection & Innovation, with the Federal Deposit Insurance Corporation (FDIC) appointed as receiver.
The FDIC created the Deposit Insurance National Bank of Santa Clara (DINB) and transferred to the DINB all insured deposits of SVB. This temporary measure protects insured depositors and gives depositors access to their insured deposits (up to $250,000 per depositor). The treatment of deposits in excess of that, however, has not been clearly addressed in the FDIC’s announcements. Until further information from the FDIC becomes available, there is uncertainty around the ramifications of the receivership for SVB customers.
Below are key takeaways and practical insights—including on urgent employment and public company disclosure matters and fraud risks—based on information currently known.
When will I be able to access the funds in my SVB deposit accounts, and how much will I be able to access?
The FDIC has initially frozen withdrawals, but has announced that SVB depositors will be able to access $250,000 in insured deposits on Monday, March 13. According to the FDIC, banking activities will resume no later than that date, including online banking and other services.
There is uncertainty around when or in what amount uninsured depositors will be paid, although the FDIC has stated that it will pay an advance dividend within the next week representing a percentage of the...
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