Regulators shut down Silicon Valley Bank, FDIC steps in to protect depositors

The Silicon Valley Bank (SVB) has been shut down by regulators, the Federal Deposit Insurance Corporation (FDIC) said on March 10.

On Thursday, March 9, SVB Financial Group, which does business as Silicon Valley Bank (SVB), attempted to calm its customers after a capital raise caused a steep drop in its share price, resulting in a 60 percent collapse in its share value, and the loss of more than $80 billion in value from bank shares.SVB had launched a $1.75 billion share sale on Wednesday to shore up its balance sheet. As per an investor prospectus the bank needed the proceeds to plug a $1.8 billion hole caused by the sale of a $21 billion loss-making bond portfolio mostly consisting of US Treasuries, Bloomberg reported.

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