Silicon Valley Bank was shut down March 10 after it failed to raise capital to keep running. The federal government stepped in to protect depositors and restore faith in the nation's banking system.
Ten updates:
1. Companies will be able to access all money deposited in Silicon Valley Bank on March 13, three days after the federal government took over the bank, according to a March 12 joint statement by the treasury, Federal Reserve and Federal Deposit Insurance Corp.
2. The Deposit Insurance Fund losses supporting uninsured depositors are being recovered by a special assessment on banks. Taxpayers will not take on the burden of the bank's losses.
3. The FDIC transferred all deposits from Silicon Valley Bank to a bridge bank to protect depositors, according to MarketWatch.
4. Shareholders and some unsecured debt holders are not protected by the federal government.
5. Treasury Secretary Janet Yellen said March 12 the government will not bail out Silicon Valley Bank, according to CNBC.
6. Silicon Valley Bank's senior management has been removed, according to the joint statement from the federal government.
7. The FDIC named Tim Mayopoulos CEO of Silicon Valley Bank N.A. on March 13. He previously served as president and CEO of the Federal National Mortgage Association, known as Fannie Mae, according to MakretWatch. He was most recently president of Blend Labs.
8. The federal government is looking for a buyer to acquire the bank. No deal has been announced, but Axios reported JPMorgan Chase & Co., Apollo Management and Morgan Stanley are among the suitors. HSBC agreed to buy the United Kingdom subsidiary of Silicon Valley Bank for £1, according to The Wall Street Journal. SVB UK has loans amounting to around $6.7 billion and about £6.7 billion in deposits.
9. General Catalyst CEO Hemant Taneja organized a joint statement of support for Silicon Valley Bank in the hours after its collapse, and several companies signed a statement of support for its acquisition. More than 600 companies signed the statement of support. Read the full list here.
10. President Joe Biden said his administration is taking steps to limit the damage from the collapse of SVB and New York-based Signature Bank, which the federal government shut down two days after it took over SVB, according to The Wall Street Journal. He also plans to ask Congress to boost regulations on banks.
Becker's will continue to update this story with new information.