SANTA CLARA (dpa-AFX) – The US money house Silicon Valley Bank (SVB), which specializes in start-up financing, has been temporarily closed after a failed emergency capital increase and has been placed under state control. This was announced by the US deposit insurance company FDIC on Friday. To protect customers, all of the bank’s insured deposits have been transferred to a new special purpose entity. The SVB, founded in 1983, had seen immense withdrawals of funds in the past few days as a result of liquidity concerns.
The 17 branches of the bank should reopen on Monday and customers will then have access to this money again at the latest. According to the FDIC, SVB had $209 billion in assets under management and approximately $175.4 billion in deposits at the end of December. It is initially unclear how much of this will be covered by the deposit insurance. For amounts over the $250,000 insurance limit, a full refund is considered in doubt. This creates a great deal of uncertainty, especially for companies.
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