FDIC transfers all deposits of Silicon Valley Bank to newly created bridge bank

[jgo]

Source: MarketWatch

The Federal Deposit Insurance Corp. said Monday that it has transferred all deposits, both insured and uninsured, of the former Silicon Valley Bank to a newly created full-service FDIC-operated bridge bank in an action that seeks to protect all depositors of the bank.

The move comes after the regulator closed the bank and its 13 branches on Friday and placed them in receivership in response to a run on the bank that was triggered by concerns about parent SVB Financial Group’s SIVB, bond portfolio and the need to raise capital. It was the second-biggest U.S. bank failure ever, after the collapse of Washington Mutual during the 2008 financial crisis.

The FDIC said depositors will have full access to their money starting Monday morning when the bridge bank, called Silicon Valley Bank N.A., opens and resumes regular activity, including online banking.

“The transfer of all the deposits was completed under the systemic risk exception approved yesterday. All depositors of the institution will be made whole,” the FDIC said in a statement.


Read more: https://www.marketwatch.com/story/fdic-transfers-all-deposits-of-silicon-valley-bank-to-newly-created-bridge-bank-names-tim-mayopoulos-ceo-2ff2072c

[Ford_Prefect]

1. The run was principally caused by Peter Theil who had no reason beyond his own greed to initiate it

https://www.bloomberg.com/news/articles/2023-03-09/founders-fund-advises-companies-to-withdraw-money-from-svb.

Yes the bank took inappropriate risks. Yes Theil had the right to move his money. He did it to kill the bank and precipitate further banking panic to manipulate the market to his advantage. Theil is among those who have financial incentive to break the economy prior to the 2024 elections. He and his financial group Founders Fund invested millions in promoting the big lie and other fraudulent RW conspiracy. It also appears they helped sponsor individuals who claimed Arizona's vote had been stolen and paid for part of the so-called examination of ballots among many other election denial actions taken in other states.

[jmowreader]

2. No reason?

He did it to weaken the Biden Administration. "See? These guys can't even keep the banks open! Trump 2024!"

[Ford_Prefect]

3. He did it to kill the bank and precipitate further banking panic to manipulate the market and tank

the "Biden Economy" prior to 2024 to enable the GOP mobsters and the MAGA base.

[brooklynite]

4. I'll observe that nobody has any knowledge of why Thiel, or anyone else, withdrew funds...

"We know what he wanted" is a lazy conspiracy theory.