Silicon Valley Bank, a lender popular among startups, has been shut down by California regulators after experiencing a liquidity crisis. The Federal Deposit Insurance Corporation has taken control of the bank and insured depositors will regain access to their accounts no later than Monday morning, with uninsured depositors receiving an advance dividend within the next week. The bank had 17 branches in California and Massachusetts and was considered a go-to for startups for decades. SVB's closure sparked fears of contagion, causing other bank stocks to be volatile on Friday. As of the end of last year, SVB had roughly two hundred nine billion in total assets with around one hundred seventy five billion in total deposits, but the amount of deposits above insurance limits as of Friday has still not been determined.
In related news, Wells Fargo customers reported missing direct deposits in their accounts on Friday morning. The bank acknowledged the issue, saying that some customers' direct deposit transactions were not showing on their accounts, but that the funds in the accounts were accurate and available. The bank is working on a resolution and apologized for the inconvenience. Forbes reported that customers using the Wells Fargo app were advised that missing transactions and incorrect balances were due to a technical issue.
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Silicon Valley Bank Collapses Is Wells Fargo Next?