US authorities take control of SVB bank

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The US authorities take control of SVB bank

Little known to the general public, the SVB was nevertheless the 16th American bank by the size of the assets.

The American authorities announced on Friday that they had closed Silicon Valley Bank, a bank close to the circles of technology which suddenly found itself in difficulty, and had entrusted the control of deposits to the American agency responsible for guaranteeing them ( FDIC).

The latter plans to reopen the bank's 17 branches on Monday, based in California and Massachusetts.

It plans allow customers to withdraw up to $250,000 in the short term, the amount usually guaranteed by the FDIC.

Those with more in their bank accounts, the vast majority of the bank's customers, are advised to contact the agency.

This is the California office of the Financial Protection and Innovation (DFPI) who officially took possession of the establishment, citing its lack of liquidity and insolvency.

She entrusted the management at the FDIC, which has created a specific entity for this purpose, which will take care of managing the bank's assets, withdrawals, outstanding loans, etc.

At the end of 2022, the bank had $209 billion in assets and around $175.4 billion in deposits, authorities said.

Little known to the general public, it was still the 16th largest U.S. bank by asset size.

Based in Santa Clara, California, Silicon Valley Bank had specialized in the technology sector, primarily doing business with customers benefiting from funds from venture capital or private equity firms.

The latter facing their own difficulties between rising interest rates and turmoil in the technology, they have, in recent months, withdrawn a lot of money from their accounts.

To have enough liquidity, Silicon Valley Bank announced on Wednesday evening that She was looking to raise capital quickly. In the process, it lost 60% on the New York Stock Exchange on Thursday and its title was suspended on Friday before the start of the session.

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