US regulators overseeing the emergency breakup of SVB Financial Group are racing to sell assets and make a portion of clients’ uninsured deposits available as soon as Monday.
Saleha Mohsin, Lydia Beyoud and Sridhar Natarajan
The initial payout — the amount of which is still being determined — would aim to tide over the firm’s distressed customers, many of them Silicon Valley entrepreneurs and their companies, with more cash to follow as the bank’s assets are sold. The amount will depend in part on the Federal Deposit Insurance Corp.’s progress in turning assets to cash by Sunday night.
At the end of last year, Silicon Valley Bank had more than $175 billion in deposits and $209 billion in total assets — but selling those holdings to meet demands for cash proved costly. That’s because SVB had loaded up on bonds and Treasuries that lost value as the Federal Reserve raised interest rates.
The amount of uninsured deposits was still being determined, the FDIC said on Friday. The watchdog said it will issue an advance dividend to uninsured depositors soon, with future payments later. Wall Street executives expect there will be a market for selling the rights to recoup deposits.
France Dernières Nouvelles, France Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
Column: The Silicon Valley Bank collapse is Silicon Valley's problem, not yours'Based on the information that has been made public, the bank unwisely put its eggs in one basket by taking deposits from an insular group of depositors: venture-funded startups.' Column by hiltzikm:
Lire la suite »
Silicon Valley Bank closed by California regulator and FDIC named receiverSilicon Valley Bank has been closed by the California Department of Financial Protection and Innovation, and the Federal Deposit Insurance Corporation (FDIC)...
Lire la suite »
Silicon Valley Bank seized by FDIC as depositors pull cashThe Federal Deposit Insurance Corporation seized the assets of Silicon Valley Bank on Friday, marking the largest bank failure since Washington Mutual during the height of the 2008 financial crisis.
Lire la suite »
Silicon Valley Bank shut down; FDIC creates new bank to protect insured depositorsThe Federal Deposit Insurance Corporation (FDIC) has seized the assets of Silicon Valley Bank Friday, the largest bank to fail since the 2008 financial meltdown, The Associated Press reported.
Lire la suite »
Silicon Valley Bank seized by FDIC as depositors pull cashThe Federal Deposit Insurance Corporation is seizing the assets of Silicon Valley Bank, marking the largest bank failure since Washington Mutual during the height of the 2008 financial crisis.
Lire la suite »