Silicon Valley Bank Clients Can Fully Access Funds After FDIC Creates New Bridge Bank
Depositors of Silicon Valley Bank (SVB) will have full access to their money beginning Monday morning, the Federal Deposit Insurance Corporation said (FDIC), after confirming a successful transfer of deposits to a new bridge bank.
The new bridge bank called Silicon Valley Bank N.A., which will be operated by the FDIC, will have normal opening hours, and customers have been automatically switched, the regulator said in a statement on Monday.
“All depositors of the institution will be made whole,” the FDIC said. “No losses associated with the resolution of Silicon Valley Bank will be borne by taxpayers.”
The transfers were approved by banking regulators on Sunday, using provisions designed to protect the financial system from contagion, after FDIC was appointed receiver of the failing bank on Friday.
Read more: Silicon Valley Bank Depositors Will Have Access to ‘All’ Funds Monday, Say Federal Regulators
