Regulators are scurrying to sell assets of the failed Silicon Valley Bank this weekend and hope to make between 30% to 50% of uninsured deposits available for withdrawal Monday, Bloomberg reported.
Regulators closed SVB on Friday amid a bank run and the Federal Deposit Insurance Corporation stepped in as the bank’s receiver. The bank is popular among tech companies and start-ups.
More cash could become available if the FDIC is able to sell assets by Sunday night, before banking resumes on Monday morning. Silicon Valley Bank had approximately $209 billion in total assets and $175.4 billion in total deposits as of Dec. 31, 2022. Deposits of up to $250,000 are insured by the FDIC.
Silicon Valley Bank is the largest U.S. bank to fail in over a decade. The collapse sent shockwaves through the tech industry over the weekend. USDC issuer Circle has $3.3 billion of its cash reserves for the stablecoin stuck at Silicon Valley Bank.
© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.