On March 13, the US Federal Deposit Insurance Corporation announced that it would move all deposits from Silicon Valley Bank (SVB) to a temporary bank (Bridge Bank).
The Federal Deposit Insurance Corporation reports that Bridge Bank will receive all deposits currently held by Silicon Valley Bank (SVB). Bridge Bank, a temporary "bridge" bank, resumes regular business hours, and Tim Mayopoulos is chosen as CEO of Silicon Valley Bank. "Bridge Bank" will continue to offer ATM and online banking services with a temporary nature. Loans will be made and Silicon Valley Bank (SVB) customer checks will be approved.
The Federal Deposit Insurance Corporation (FDIC) has ordered that Bridge Bank receive all deposits currently held by Silicon Valley Bank (SVB). The FDIC is taking this action as part of its efforts to guarantee the stability and safety of the US banking system. Clients of SVB can anticipate that, in accordance with the decision, their deposits will be seamlessly transferred to Bridge Bank, a well-capitalized institution that is well-equipped to handle the quantity of deposits.
#SVB clients can continue to use their funds and conduct banking activities during this changeover period with little disruption. The FDIC has taken this action to protect depositors and preserve the stability of the banking system, and it will continue to carefully monitor the situation to make sure that every customer is treated equally and fairly at all times.
It is critical to emphasize that there were no safety or soundness issues with SVB at the time the #FDIC decided to move all deposits from SVB to Bridge Bank. Instead, it is a preventative measure to ensure the stability of the financial system and the security of depositor funds. SVB will carry on as usual, and customers may anticipate regular updates from the bank and the FDIC on the state of their deposits.
