This bank will protect insured and uninsured depositors trapped in Silicon Valley Bank failure2 min read 12 Mar 2023, 03:48 PM IST
Data from FDIC showed that as of December 31, 2022, SVB's total assets stood at $209.0 billion --- while its total deposits were approximately around $175.4 billion. About 89% of the bank's total deposits are uninsured.
Billions of dollars of investors' wealth either individuals or companies are stranded due to the crisis in Silicon Valley Bank. Dramatically, SVB which is a lender to some of the renowned tech biggies, unicorns, and start-ups has been shut down due to concerns over lower cash availability. This led to a storm of many companies frantically trying to remove their money from SVB. However, the task is difficult and uncertain. Companies are in a panic! Nevertheless, Federal Deposit Insurance Corporation (FDIC) has created a bank that will protect both insured and uninsured depositors at SVB.