Latest on Silicon Valley Bank Collapse: Live Updates

10:57 am ET, March 14, 2023

What the FDIC Acquisition of Silicon Valley Bank and Signature Means for Their Customers and Employees

From CNN’s Gene Sahadi

Federal Deposit Insurance Corporation (FDIC) headquarters in Washington, DC on Monday, March 13.

(Al Drago/Bloomberg/Getty Images)

Here it is Where things are for customers and employees Both Silicon Valley Bank and Signature Bank failed this week and were promptly taken over by the FDIC.

Will customers have full access to all funds on deposit? Yes. The US government intervened over the weekend, promising that bank depositors would receive their money from Monday March 13 and that taxpayers would not bear the losses related to SVB’s collapse.

This means that customers can access their insured and uninsured deposits through the FDIC’s “Bridge Bank” for SVB deposits and “Bridge Bank” for Signature Deposits.

Both SVB and Signature are FDIC-insured. That means the FDIC insures up to $250,000 per depositor for each account ownership category. Some Customers can cover up to $250,000 If they have more than one type of deposit account, each account is closed separately. What’s more, if more than one person jointly owns an account, each owner is covered up to $250,000.

But the move by the three agencies is crucial to give customers access to their uninsured deposits. For example, most of SVB’s customers are businesses and have more than $250,000 in deposits because they use SVB for most of their cash management, including payroll.

What are the ways customers can access their money? Customers can access their funds through ATMs, debit cards and checks – just like before FDIC.
What about lines of credit? Ber Frequently Asked Questionss mentioned SVP And Signature As a result of the closings, customers’ lines of credit were transferred to new bridge banks created by the FDIC to handle customers’ transfer deposits and banking services. The company notes that customers should contact the bank if they have any questions about their lines of credit.

Can customers continue to keep their money where it is? Yes, but the FDIC will tell customers how long they can continue to do so. At this time, the FDIC has not established any end dates for services to SVB or Signature customers.

What if a customer gets a loan through SVB or Signature? Even if the FDIC sells the loan, borrowers must make payments to the same billing address. Any changes will be notified.

Will SVB and Signature employees continue their jobs? Very possible, but not for long. Typically, in an FDIC takeover, employees of the failed bank Continue to help change. Their salary and benefits are paid by the FDIC at that time. If the FDIC finds a buyer for any bank, the acquiring company will decide whether the banks’ employees should stay on.

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