California Gov. Gavin Newsom says he’s working with the Federal Deposit Insurance Corporation and the White House after Silicon Valley Bank was shut down by regulators on Friday.
“Over the last 48 hours, I have been in touch with the highest levels of leadership at the White House and Treasury. Everyone is working with FDIC to stabilize the situation as quickly as possible, to protect jobs, people’s livelihoods, and the entire innovation ecosystem that has served as a tent pole for our economy,” Newsom said on Saturday.
The FDIC said in a press release on Friday that SVP was closed by the California Department of Financial Protection and Innovation, which appointed the FDIC as the receiver of insured deposits of the bank.
SVB caters to the venture capital community, with 17 branches in California and Massachusetts.
SILICON VALLEY BANK SHUT DOWN BY REGULATORS
The bank was the 16th-largest bank inside the United States, and is the second-largest bank in the United States to close since 2008.
As a result of regulators shutting down SVB, other bank stocks were volatile on Friday.
US REGULATORS WARN BANKS OF HEIGHTENED LIQUIDITY RISKS IN CRYPTO-RELATED DEPOSITS
The FDIC covers bank accounts up to $250,000, and said on Friday that depositors within SVP would regain access to accounts by Monday morning.
It said that uninsured depositors will receive “an advance dividend within the next week.”
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However, the amount of deposits that are above the FDIC’s insurance limit hasn’t been determined.
FOX Business’ Breck Dumas contributed to this report.