The Federal Deposit Insurance Corporation (FDIC) announced early Monday that it has effectively transferred insured and uninsured deposits to an FDIC-operated "bridge bank" in order to protect all depositors of the collapsed Silicon Valley Bank (SVB).
According to the statement, the bridge bank, Silicon Valley Bank NA, will resume its operations today with normal banking hours. Depositors and borrowers will immediately become clients of the new institution, while the first ones will have access to their money. Checks will continue to clear, and loan clients should continue to make loan payments as usual.
The FDIC added that it had removed all senior management while appointing Tim Mayopoulos, Chief Executive Officer of Silicon Valley Bank, NA.
