Silicon Valley Bank, appointed as a receiver by the California Department of Financial Protection and Innovation, was closed today by the Federal Deposit Insurance Corporation (FDIC). The CEO of Binance spoke on the matter.
All insured depositors will have full access to their insured deposits until Monday morning.
FDIC will pay advance dividends to uninsured depositors and issue receiver certificates for the remaining balance of their uninsured funds. As FDIC sells Silicon Valley Bank’s assets, future dividend payments may be made to uninsured depositors.
Banking regulators seized Silicon Valley Bank, completing the largest bank failure since the Great Depression. The bank was the 18th largest bank in the United States in terms of total asset size.
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Binance CEO CZ Said Funds Are Safe
Meanwhile, the CEO of the cryptocurrency exchange Binance, Changpeng Zhao (CZ), also made a statement on the matter. Zhao said that Binance has no exposure to Silicon Valley Bank and that the funds are “SAFU.”
— CZ 🔶 Binance (@cz_binance) March 10, 2023
“Bloomberg official reveals the reason for Silicon Valley Bank’s collapse”
“Various factors came together to cause the trouble. Some specific to SVB, others a source of broader banking worries. Behind most of them is the Federal Reserve’s rapid interest-rate increases last year to tame the highest inflation in decades.
A consequence of these increases that hit SVB particularly hard was a sharp decline in high-flying technology companies, the source of its rapid growth. As venture capital dried up, those firms turned to their deposits for the cash they needed to keep going.”
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