Regulators to dispose of SVB's assets to protect depositors

California banking regulators on Friday closed SVB Financial Group, putting the tech-heavy lender into receivership and will dispose of its assets, moving quickly to protect depositors as a crisis rippled through global markets and hit banking stocks. The regulator appointed the Federal Deposit Insurance Corporation (FDIC)as receiver, according to a statement.

Silicon Valley Bank is the first FDIC-insured institution to fail this year, the FDIC said. The last FDIC-insured institution to close was Almena State Bank, Almena, Kansas, on October 23, 2020.

Shares of SVB were halted on Friday after tumbling as much as 66% in premarket trading. It had about $209 billion in total assets and about $175.4 billion in total deposits, as of December 31, 2022.


The main office and all branches of Silicon Valley Bank will reopen on March 13 and all insured depositors will have full access to their insured deposits no later than Monday morning, according to the agency's statement.

SVB, which does business as Silicon Valley Bank, was not immediately available for comment.

Earlier, SVB said it was undergoing a series of conversations to determine next steps for the company, it wrote in a memo to employees Friday morning seen by Reuters.

Treasury Secretary Janet Yellen told lawmakers on Capitol Hill Friday the department was aware of recent developments and was monitoring the situation, calling it "a matter of concern" when banks experience losses, according to CNBC. Agencies