Posted by (TheLifeTank.com 03/11/2023 news)The 16th-ranked Silicon Valley Bank (SVB Financial Group) declared bankruptcy on Friday, March 3, making it the second-largest bank failure in U.S. history since the collapse of the Bank of Washington in 10.
©️Silicon Valley Bank SVB official website
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Bank failures implicate technology sector
Silicon Valley Bank is the 16th largest bank in the United States. Its customers are mainly technology practitioners and start-up companies invested by venture capital. Customers include well-known Internet companies such as Airbnb, Uber, Meta, and Linkedin.
The NewYork Post reported that the streaming company Roku has deposited $4.87 million in Silicon Valley Bank, which accounts for 26% of the company's total assets in cash and equivalents.
At the same time, according to anonymous and unconfirmed revelations from netizens, the documents submitted by Meta to the US Securities and Exchange Commission (SEC) showed that on December 2022, 12, Meta had approximately US$31 billion in cash and equivalents in Silicon Valley Bank, accounting for Meta 100% of total assets.
After SVB's swift collapse, parts of the U.S. tech industry have been scrambling to raise funds to pay salaries and bills.
The Running CrowdCreator: Justin Sullivan | Credit: Getty Images Copyright: 2023 Getty Images
自2000年10月1日起，截止硅谷银行破产时的近20年间，全美累积有564家银行破产。银行破产后该怎么办？背后的保险制度如何运作？
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American Banking Sector Protected by Insurance System
In the US, if a bank fails, the FDIC (Federal Deposit Insurance Corporation) handles claims under its deposit insurance program.Here is a general overview of the FDIC claims process:
- FDIC Received Banks:Once a bank declares bankruptcy, the FDIC takes over the bank and begins to clean up and manage the bank's operations.
- Notify bank customers:The FDIC will notify bank customers, including savers and borrowers, about the bank's bankruptcy and about how to obtain information about their deposits and loans.
- Claim application:Bank customers can file a claim with the FDIC for their deposits with the bank.Claims can be filed online at the FDIC website or completed by mailing the application form.
- Claims payment:The FDIC will pay deposit claims to eligible customers in accordance with the provisions of its deposit insurance program.Currently, the FDIC's deposit insurance limit for each bank customer is $25 per account, so if a customer deposits no more than $25 in the bank, they can get full coverage.
In general, if a bank fails, the FDIC opens the claims process and does what it can to help customers to keep their deposits protected.
©️FDIC Official Notice
Less than 24 hours after Silicon Valley Bank declared bankruptcy, the Federal Deposit Insurance Corporation of the United States issued an announcement immediately, and gave a specific timeline to cash out depositors' funds claims. (full text)
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