: FDIC transfers all deposits of Silicon Valley Bank to newly created ‘bridge bank,’ names Tim Mayopoulos CEO
The Federal Deposit Insurance Corp. (FDIC) said Monday it has transferred all deposits, both insured and uninsured, of the former Silicon Valley Bank to a newly created, full-service FDIC-operated “bridge bank” in an action that seeks to protect all depositors of the bank. The move comes after the regulator closed the bank and its 13 branches on Friday and placed them in receivership, after a run on the bank that was triggered by concerns about the parent SVB Financial Group’s SIVB bond portfolio and the need to raise capital. The FDIC said depositors will have full access to their money starting Monday morning when the bridge bank, called Silicon Valley Bank N.A., opens and resumes regulator activity, including online banking. “The transfer of all the deposits was completed under the systemic risk exception approved yesterday. All depositors of the institution will be made whole,” the FDIC said in a statement. It named Tim Mayopoulos, a former president and CEO of the Federal National Mortgage Association, as CEO of Silicon Valley Bank N.A. Mayopoulos was most recently president of Blend Labs Inc. BLND
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