How much will Silicon Valley Bank customers get back from the money they deposited? They may not recover it all, analysts say. (2024)

FAQs

What will happen to Silicon Valley Bank depositors? ›

Silicon Valley Bank is closed, so the FDIC formed the Deposit Insurance National Bank of Santa Clara to consolidate insured and uninsured deposited into one institution. All deposits of SVB were transferred to the National Bank of Santa Clara, and insured depositors had access to their funds on March 13.

FDIC insurance means that any money you have in an SVB bank account up to $250,000 will be fully covered. You will get all that money back. For anything over $250,000 in your SVB bank account, Moody's estimates you will get 80 cents to 90 cents for each dollar deposited.

The Government Steps In. Well, the government did end up stepping in. On Sunday, the Biden administration announced that all of Silicon Valley Bank's customers — whether they were insured or not — will have full access to their deposits.

The announcement, coupled with warnings from prominent Silicon Valley investors, caused a bank run as customers withdrew funds totaling $42 billion by the following day.

Most of the cost will likely be covered by proceeds the Federal Deposit Insurance Corp. receives from winding down the two banks. Any costs beyond that would be paid for out of the FDIC's deposit insurance fund.

Enjoy the VeraBank relationship you know and trust, with deposit insurance up to $100,000,000.

IS MY MONEY SAFE? Yes! No one lost any money on deposit as a result of this transaction. Depositors of Silicon Valley Bridge Bank, N.A., will automatically become depositors of First-Citizens Bank & Trust Company.

Banks affected were First Republic Bank, PacWest Bancorp, Regions Financial and Zions Bancorporation. Even shares of big banks lost ground in the aftermath of the SVB and Signature collapses, including Wells Fargo, JPMorgan Chase and Citigroup.

SVB's 40,000 customers are mostly tech companies—the bank provided services to around half of US startups—but those tech companies are tattooed into the fabric of daily lives across the US and beyond.

The news: Last Friday, Pennsylvania financial regulators seized and shut down Philadelphia-based Republic First Bank in the first FDIC-insured bank failure of 2024.

Is my money safe in the bank right now? ›

Your money is as safe as it can be in the bank. Between depositor insurance, emergency loans and bank sales, the government works hard to protect what you have.

When a bank failed the depositors were simply left without a penny. The life savings of millions of Americans were wiped out by the bank failures.

SVB's biggest depositor was Circle Internet Financial, the stablecoin firm behind USD Coin. The FDIC document shows that Circle held $3.3 billion at SVB, a figure that the stablecoin company previously disclosed. The streaming platform Roku held $420 million at SVB, according to the FDIC document.

We identify 137 SVB depositors which mention SVB in their 8-K filings from March 10 to March 13, 2023, and 251 SVB borrowers which mention SVB as their lender in any of their 10-K filings from 2021 to 2022. Our event study findings suggest that borrowers appear to suffer more than the depositors from the bank failure.

Unless your bank has set a withdrawal limit of its own, you are free to take as much out of your bank account as you would like. It is, after all, your money.

Banks affected were First Republic Bank, PacWest Bancorp, Regions Financial and Zions Bancorporation. Even shares of big banks lost ground in the aftermath of the SVB and Signature collapses, including Wells Fargo, JPMorgan Chase and Citigroup.

According to The Kobeissi Letter, Circle holds $3.3 billion, Roku $487 million, BlockFi $227 million, Roblox $150 million, Ginkgo Bio $74 million, iRhythm $55 million, Rocket Lab $38 million, Sangamo Therapeutics $34 million, Lending Club $21 million and Payoneer and $20 million, in deposits.

You may continue to make deposits until the DINB closes. Online banking and bill pay services will not be available over the closing weekend; however, these services will resume Monday, March 13, 2023.