Article Image
IPFS News Link • Government

URGENT: The FDIC Has Taken Control of ALL DEPOSITS at a Large Bank

• by Daisy Luther

Earlier this week, I wrote an article about the possibility of the FDIC doing a bail-in with your money. The article discussed how actions would be taken on a Friday and how depositors could be right out of luck.

Several readers called it "fear porn" but as it turns out, it wasn't.

This morning, it's been announced that the FDIC has taken control of the deposits in Silicon Valley Bank. As of today, Friday, customers are not able to access their accounts.

Financial regulators have closed Silicon Valley Bank and taken control of its deposits, the Federal Deposit Insurance Corp. announced Friday, in what is the largest bank failure since the Global Financial Crisis more than a decade ago.

The collapse of SVB, a key player in the tech and venture capital community, leaves companies and wealthy individuals largely unsure of what will happen to their money….

According to press releases from regulators, the California Department of Financial Protection and Innovation closed SVB and named the FDIC as the receiver. The FDIC in turn has created the Deposit Insurance National Bank of Santa Clara, which now holds the insured deposits from SVB.

The FDIC said in the announcement that insured depositors will have access to their deposits no later than Monday morning. SVB's branch offices will also reopen at that time, under the control of the regulator.

The FDIC also said SVB's official checks will continue to clear.

This is incredibly concerning.  SVB is (or was) a major banking entity for venture-based companies.

Agorist Hosting