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.