- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Aaron Nicodemus2023-03-10T20:22:00
In the largest U.S. bank failure since 2008, Silicon Valley Bank was closed Friday and its approximately $175 billion in deposits placed under control of the Federal Deposit Insurance Corporation (FDIC).
The California Department of Financial Protection and Innovation (DFPI) announced the closure, citing in a press release the bank’s “inadequate liquidity and insolvency.”
Founded in 1983 and based in Santa Clara, Calif., Silicon Valley Bank specialized in loans to the innovation economy but struggled recently with a run on deposits. The bank had total assets of $209 billion and total deposits worth $175.4 billion as of Dec. 31, 2022, the DFPI said.
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The White House, Department of the Treasury, and other federal banking regulators swung into action over the weekend to prevent the failure of two banks with $264 billion in combined deposits from turning into a full-blown economic crisis.
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