A Major US Bank Shutdown Amidst Largest Banking Collapse Since Global Financial Crisis

California bank regulators shut down SVB Financial Group on Friday, in the biggest banking collapse since the global financial crisis, and moved quickly to protect depositors at the startup-focused bank.

According to a statement, the regulator has assigned jurisdiction over the bank to the Federal Deposit Insurance Corporation, which will dispose of its assets.

The foundation said Silicon Valley Bank, the name SVB Group uses for its businesses, was the first insured entity to go down quest’year. The latest entity to be insured by the company was Almina State Bank of Kansas on October 23, 2020, according to Reuters.

The statement added that the headquarters and all branches of Silicon Valley Bank are expected to reopen on March 13, and all insured deposit holders will be able to fully access their deposits by Monday morning at the latest.

Tech workers whose salaries depended on the bank worried about getting paid today. At an SVB branch in San Francisco, a sign posted instructed customers to call a toll-free number.

Federal Deposit Insurance Corporation said it will seek to sell SVB’s assets and uninsured depositors could receive future dividends in cash.

The SVB sought to reassure its venture capital clients this week that their funds were safe after a capital raise sent its shares tumbling 60% and contributed to an $80 billion drop in its value.

The trading (SVB) was suspended in Friday’s session after plunging 66% in pre-open trading.