Saturday, March 11, 2023

Paso Robles congressman speaks out on closure of Silicon Valley Bank

Silicon Valley Bank, a financial institution with approximately $209.0 billion in total assets and $175.4 billion in total deposits, was closed down by the California Department of Financial Protection and Innovation. 

The FDIC was appointed as the receiver and created the Deposit Insurance National Bank of Santa Clara (DINB) to safeguard insured depositors. The closure marks the second-largest bank failure in US history, following the 2008 collapse of Washington Mutual Bank.

Customers with accounts in excess of $250,000 should contact the FDIC toll-free at 1-866-799-0959. As of closing time, the amount of uninsured deposits was undetermined, but the FDIC will provide an advance dividend to uninsured depositors within the next week, and a receivership certificate for the remaining amount of their uninsured funds.

Congressman Jimmy Panetta (D), who represents Paso Robles and Monterey areas, expressed concern about the bank's failure and urged the FDIC to provide clear updates to customers, both insured and uninsured. Panetta also hopes that a sale can be arranged to keep all depositors whole. The cause of the bank's failure is still unknown.

Silicon Valley Bank had 17 branches in California and Massachusetts. However, all of them will reopen on Monday, March 13, 2023, and the DINB will maintain Silicon Valley Bank's normal business hours. Banking activities, including online banking and other services, will resume no later than Monday, March 13. Under the Federal Deposit Insurance Act, the FDIC may create a DINB to ensure that customers have continued access to their insured funds.

The FDIC as the receiver will retain all the assets from Silicon Valley Bank for later disposition, and loan customers should continue to make their payments as usual. The FDIC also assures that insured depositors will have full access to their insured deposits by Monday morning.

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