BOSTON – Massachusetts Governor Maura T. Healey, Senator Elizabeth Warren, and Massachusetts Economic Development Secretary Yvonne Hao have issued statements on theFDIC’s appointment as the receiver of Silicon Valley Bank.
“We have been closely monitoring the situation with Silicon Valley Bank. I have spoken with federal regulators and the White House, and they understand the impact of the situation on Massachusetts. I have also spoken with members of the business and banking communities and our state and federal delegation,” said Gov. Healey today, March 12.
““In the wake of Silicon Valley Bank’s failure, I am receiving updates from the FDIC, and I expect there will soon be a better assessment of how much help is available for customers in Massachusetts and across the nation. SVB executives must be held accountable for any malfeasance or mismanagement that led to this failure. President Trump and Congressional Republicans’ decision to roll back Dodd Frank’s “too big to fail” rules for banks like SVB – reducing both oversight and capital requirements – contributed to a costly collapse,” said Senator Elizabeth Warren on Friday, March 10.
“Our administration is actively working to support individuals and businesses affected by SVB’s closure and to find solutions to help them address immediate needs, including putting supports in place to ensure that small businesses and employees do not experience significant disruptions. We will continue to be in dialogue with decision-makers and support all efforts to preserve the strength and stability of our markets and protect jobs, businesses, non-profits and our economy. We have confidence in the strength of our regional banks and banking operations,” said Gov. Healey, this evening.
Economic Development Secretary Hao said “My office has been working throughout the weekend to gather data on the impact of Silicon Valley Bank’s closure here in Massachusetts and to assess how sectors of our economy may be affected in the days ahead. We know Massachusetts may be uniquely impacted by this situation due to our strong technology, innovation, and life sciences sectors and because SVB had a broad client base here, including nonprofits, individuals and others. We are confident in the FDIC’s process in resolving bank closures and in the Massachusetts banking sector. The Healey-Driscoll Administration is working across secretariats to develop creative solutions to help businesses and individuals meet their needs and fill gaps where necessary.”
Headquartered in California, Silicon Valley Bank had VB has 17 branches in California and Massachusetts.
Silicon Valley Bank, Santa Clara, California, was closed Friday by the California Department of Financial Protection and Innovation, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver.
To protect insured depositors, the FDIC created the Deposit Insurance National Bank of Santa Clara (DINB). At the time of closing, the FDIC as receiver immediately transferred to the DINB all insured deposits of Silicon Valley Bank.
All insured depositors will have full access to their insured deposits no later than Monday morning, March 13, 2023
The FDIC will pay uninsured depositors an advance dividend within the next week. Uninsured depositors will receive a receivership certificate for the remaining amount of their uninsured funds. As the FDIC sells the assets of Silicon Valley Bank, future dividend payments may be made to uninsured depositors.
The main office and all branches of Silicon Valley Bank will reopen on Monday, March 13, 2023. The DINB will maintain Silicon Valley Bank’s normal business hours.
Banking activities will resume no later than Monday, March 13, including on-line banking and other services. Silicon Valley Bank’s official checks will continue to clear. Under the Federal Deposit Insurance Act, the FDIC may create a DINB to ensure that customers have continued access to their insured funds.
As of December 31, 2022, Silicon Valley Bank had approximately $209.0 billion in total assets and about $175.4 billion in total deposits.
At the time of closing, the amount of deposits in excess of the insurance limits was undetermined.