No one can predict the follow-on effects of a moment like this. We are in uncharted territory.
I write this twice-weekly newsletter on a tight deadline, so when I saw a press release that started with “Silicon Valley Bank, Santa Clara, California, was closed today,” I realized I might need to pivot.
To protect SVB’s former customers, who have around $175 billion in deposits, the Federal Deposit Insurance Corporation (FDIC) transferred assets to a new entity: the Deposit Insurance National Bank of Santa Clara.
Insured customers who deposited $250,000 or less will have access to their money on Monday morning, according to the FDIC. Uninsured customers will receive an advance dividend in the next seven days, but beyond that, they’ll only get a certificate for the remaining balance.
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