The US bank needs a multi-billion dollar capital increase to cushion losses from its portfolio.
(Photo: Bloomberg)
new York The Silicon Valley Bank went bankrupt at record speed. On Wednesday, the institute from Santa Clara, California, wanted to collect new capital, after which the share collapsed. A search for a buyer was also unsuccessful.
The US deposit insurance FDIC took control of the bank on Friday morning (local time). She wants to ensure that the bank can be processed in an orderly manner and that customers can get their money, as the authority announced on Friday. In the US, assets of up to $250,000 are insured.
SVB papers suspended from trading at the start of the stock exchange
Silicon Valley Bank shares fell by more than 60 percent on Thursday – and on Friday they were initially down more than 60 percent before the market. The SVB papers were then suspended from trading at the start of the stock exchange. Nasdaq rules dictate that trading will be halted whenever there is important news that could severely affect trading.
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