BY Richard Moorhead, The Western JournalMarch 10, 2023
1 year ago
BY 
 | March 10, 2023
1 year ago

Second-Largest Bank Failure in History Underway, US Authorities Seize Collapsing Institution

The federal government is stepping in as one of the largest banks in America faces a financial collapse.

Silicon Valley Bank was shuttered amid a bank run on Friday, with the California Department of Financial Protection and Innovation taking control of the distressed company.

The state agency appointed the Federal Deposit Insurance Corporation as the receiver of the company, according to an FDIC news release.

Silicon Valley's stock price collapsed this week as creditors scrambled to withdraw their funds -- afraid of the bank's precarious financial situation.

The takeover will allow Silicon Valley Bank's creditors to withdraw federally guaranteed deposits of $250,000 -- although there's no guarantee for holdings that exceed that sum.

Silicon Valley's assets have been transferred to the Deposit Insurance National Bank of Santa Clara to ensure that small creditors can access their funds.

[firefly_poll]

The federal intervention doesn't necessarily mean that Silicon Valley is doomed to go bankrupt.

The federal receivers of the bank plan to reopen it for transactions no later than Mar. 13, according to the statement from the FDIC.

The company's executives were seeking to raise additional capital to fund a glut of sudden withdrawals this week, according to ABC News.

The bank is the 16th largest in the United States.

Its assets are heavily reliant on California's technology industry.

The federal takeover of the bank is the largest of its kind since Washington Mutual's collapse amid the 2008 financial crisis -- itself the largest bank in history to fail.

This article appeared originally on The Western Journal.

Written by: Richard Moorhead, The Western Journal

NATIONAL NEWS

SEE ALL

Russian Hackers Target US Agencies In Email Breach Involving Microsoft

In a major cybersecurity incident, Russian government-linked hackers known as Midnight Blizzard have compromised email correspondence between several U.S. federal agencies and tech giant Microsoft.…
8 hours ago
 • By Staff Writers

Judge Denies Trump's Request to Delay Hush Money Trial

In a major legal setback for former President Donald Trump, his attempt to postpone the upcoming hush money trial was rejected by New York Judge…
8 hours ago
 • By Staff Writers

O.J. Simpson's Obituary Erroneously Mentions Donald Trump In LA Times

In a memorable mishap, the Los Angeles Times obituary for former NFL star O.J. Simpson mistakenly included the name of Donald Trump. Quick actions were…
1 day ago
 • By Staff Writers

Trump's Trial on Stormy Daniels Case Proceeds After Appeal Denied

A New York appeals court has firmly dismissed the final appeals by former President Donald Trump's legal team to postpone the upcoming trial related to…
1 day ago
 • By Staff Writers

North Carolina Braces for High-Stakes 2024 Elections

A recent Quinnipiac Poll has unveiled a nail-biting electoral scenario in North Carolina, as former President Donald Trump narrowly leads President Joe Biden in the…
1 day ago
 • By Staff Writers

DON'T WAIT.

We publish the objective news, period. If you want the facts, then sign up below and join our movement for objective news:

    LATEST NEWS

    Newsletter

    Get news from American Digest in your inbox.

      By submitting this form, you are consenting to receive marketing emails from: American Digest, 3000 S. Hulen Street, Ste 124 #1064, Fort Worth, TX, 76109, US, http://americandigest.com. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact.
      Christian News Alerts is a conservative Christian publication. Share our articles to help spread the word.
      © 2024 - CHRISTIAN NEWS ALERTS - ALL RIGHTS RESERVED
      magnifier