Troubled Bank Task Force
On March 10, 2023, the California Department of Financial Protection and Innovation closed Silicon Valley Bank, Santa Clara, California (“SVB”) and appointed the Federal Deposit Insurance Corporation (“FDIC”) as receiver of SVB. To protect insured depositors, the FDIC created the Deposit Insurance National Bank of Santa Clara (“DINB”). At the time of closing, the FDIC, as receiver, immediately transferred to the DINB all insured deposits of SVB.
On Sunday, March 12, 2023, the Department of Treasury, Federal Reserve, and FDIC issued a joint statement that Treasury has adopted resolutions to enable the FDIC to proceed with the deposits at SVB to protect its depositors and others. The statement also expressed their intention to deal similarly as to Signature Bank, New York, New York, which was closed on March 12 by its New York regulators, and as to other depository institutions which may encounter similar problems.