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The federal government is stepping in as one of the largest banks in America faces a financial collapse.
Silicon Valley Bank was shuttered amid a bank run on Friday, with the California Department of Financial Protection and Innovation taking control of the distressed company.
The state agency appointed the Federal Deposit Insurance Corporation as the receiver of the company, according to an FDIC news release.
Silicon Valley’s stock price collapsed this week as creditors scrambled to withdraw their funds — afraid of the bank’s precarious financial situation.
The takeover will allow Silicon Valley Bank’s creditors to withdraw federally guaranteed deposits of $250,000 — although there’s no guarantee for holdings that exceed that sum.
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