FDIC Creates Silicon Valley Bridge Bank

<p>The Federal Deposit Insurance Corporation &lpar;FDIC&rpar; has transferred all deposits—both insured and uninsured—and substantially all assets of the former Silicon Valley Bank of Santa Clara&comma; to a newly created&comma; full-service FDIC-operated &OpenCurlyQuote;bridge bank’ in an action designed to protect all depositors of Silicon Valley Bank&period;<&sol;p>&NewLine;<p>Depositors will have full access to their money&comma; when Silicon Valley Bridge Bank&comma; N&period;A&period;&comma; the bridge bank&comma; opened and resumed Monday normal banking hours and activities&comma; including online banking&period;  Depositors and borrowers will automatically become customers of Silicon Valley Bridge Bank&comma; N&period;A&period; and will have customer service and access to their funds by ATM&comma; debit cards&comma; and writing checks in the same manner as before&period;  Silicon Valley Bank’s official checks will continue to clear&period;  Loan customers should continue making loan payments as usual&period;<&sol;p>&NewLine;<p>Silicon Valley Bank was closed by the California Department of Financial Protection and Innovation on Friday&comma; March 10&comma; 2023&comma; and the FDIC was appointed receiver&period;<&sol;p>&NewLine;<p>The FDIC named Tim Mayopoulos as CEO of Silicon Valley Bridge Bank&comma; N&period;A&period; Mr&period; Mayopoulos is former president and CEO of the Federal National Mortgage Association and most recently served as president of Blend Labs&comma; Inc&period;<&sol;p>&NewLine;<p>The transfer of all the deposits was completed under the <a href&equals;"https&colon;&sol;&sol;www&period;fdic&period;gov&sol;news&sol;press-releases&sol;2023&sol;pr23017&period;html">systemic risk exception approved Sunday<&sol;a>&period; All depositors of the institution will be made whole&period;  No losses associated with the resolution of Silicon Valley Bank will be borne by taxpayers&period;  Shareholders and certain unsecured debt holders will not be protected&period;  Senior management has also been removed&period;  Any losses to the Deposit Insurance Fund to support uninsured depositors will be recovered by a special assessment on banks&comma; as required by law&period;<&sol;p>&NewLine;<p>The receiver for Silicon Valley Bank has also transferred all Qualified Financial Contracts &lpar;as defined in 12 USC 1821&lpar;e&rpar;&rpar; of the failed bank to the bridge bank&period;<&sol;p>&NewLine;<p>These actions will protect depositors and preserve the value of the assets and operations of Silicon Valley Bank&comma; which may improve recoveries for creditors and the DIF&period;<&sol;p>&NewLine;<p>A bridge bank is a chartered national bank that operates under a board appointed by the FDIC&period; It assumes the deposits and certain other liabilities and purchases certain assets of a failed bank&period; The bridge bank structure is designed to &OpenCurlyDoubleQuote;bridge” the gap between the failure of a bank and the time when the FDIC can stabilize the institution and implement an orderly resolution&period;<&sol;p>&NewLine;<p>&nbsp&semi;<&sol;p>&NewLine;