Whispers about insolvency. A bank run. A desperate attempt to raise funds. A bank failure. Market gyrations. Concerns about financial contagion.
History is repeating itself. California regulators have shut down Silicon Valley Bank, a lender aimed at start-ups, technology firms, and wealthy individuals. The Federal Deposit Insurance Corporation stepped in as the bank’s receiver. Account holders with less than $250,000 in savings will have full access to their funds as of Monday, the FDIC said. Account holders with more than that—the overwhelming majority of entities banking with SVB, according to the bank itself—will have to wait and see.