Within hours of reports that Silicon Valley Bank was considering a sale after it failed to raise enough money to keep going, state and federal banking regulators shut it down. In an announcement from the Federal Deposit Insurance Corporation (FDIC), the agency said, “All insured depositors will have full access to their insured deposits no later than Monday morning, March 13, 2023.”
Silicon Valley Bank is important for venture capital firms and startups. But as the economy has changed, VC-funded companies burned through their available cash. Simultaneously, VC funding dried up. So Silicon Valley Bank’s deposits dropped faster than the bank anticipated.
After Silicon Valley Bank announced on Wednesday that it had sold $21 billion in…