Crypto News: California regulators have reportedly seized Silicon Valley Bank in what could be the largest bank failure in the recent times. This news comes amid the bank’s attempts to sell itself after failed attempts to raise capital. The Silicon Valley Bank faced it difficult to raise funds as customers continued to withdraw funds. Meanwhile, the crypto market continues to show signs of contagion from this news as Bitcoin price drops slightly.
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At one point, the bank’s issues seemed out of control as the Silicon Valley Bank stock crashed around 70%, before halting on Friday.
Silicon Valley Bank Seized
The California Department of Financial Protection and Innovation appointed the appointed the Federal Deposit Insurance Corporation (FDIC) as receiver of the deposits. The FDIC, an independent US financial agency, said it created a new entity to divert insured deposits of Silicon Valley Bank. The FDIC created an entity named the Deposit Insurance National Bank of Santa Clara (DINB). All insured deposits of Silicon Valley Bank were thereafter transferred to the DINB, it said in a statement. The agency further said the deposits will be made available for the depositors from Monday, March 13, 2023.
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The agency said it had no information on Silicon Valley Bank’s deposits currently. It said the bank had around $209.0 billion in total assets and about $175.4 billion in total deposits as of December 31, 2022.
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