The Federal Deposit Insurance Corporation (FDIC) on Monday transferred all deposits—both insured and uninsured—and other assets belonging to the Silicon Valley Bank (SVB) of Santa Clara, California, to the newly created, full-service FDIC-operated “bridge bank.”
The bridge bank is expected to give depositors full access to their money on Monday (yesterday), according to a statement made available on the FDIC website. “Depositors will have full access to their money beginning this morning, when Silicon Valley Bridge Bank, N.A., the bridge bank, opens and resumes normal banking hours and activities, including online banking,” it said.
It added that “depositors and borrowers will automatically become customers of Silicon Valley Bridge 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.”
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The transfer of all the deposits was completed under the systematic 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. Shareholders and certain unsecured debt holders will not be protected. Senior management has also been removed. Any losses to the Deposit Insurance Fund to support uninsured depositors will be recovered by a special assessment on banks, as required by law,” it said.
Earlier on Monday, the FDIC appointed former Fannie Mae CEO Tim Mayopoulos as the new head of the FDIC-controlled SVB.
In a letter to clients, Mayopoulos said that the bank will provide more information as soon as it is available.
“I look forward to getting to know the clients of Silicon Valley Bank… I also come to this role with experience in these kinds of situations. I was part of the new leadership team that joined Fannie Mae in the wake of the financial crisis in 2008–09, and I served as the CEO of Fannie Mae from 2012–18,” Mayopoulos said in his letter.