Silicon Valley Bank was closed today by the California Dept of Financial Protection and Innovation, which appointed the FDIC as receiver.
The bank was closed and will reopen on Monday.
The FDIC will pay uninsired depositors an advance dividend within the next week and a receivership certificate for the remainder of uninsured funds.
And that is why you get your money above $250K out of a bank that’s in trouble.
It’s a bad outcome from any depositors who might now find themselves in a liquidity crunch.
The good news is that this was swift but the question is whether it spreads.