The Federal Deposit Insurance Corporation has seized control of Silicon Valley Bank's assets on Friday, marking the biggest bank failure since Washington Mutual during the height of the 2008 financial crisis.
The FDIC ordered the closure of Silicon Valley Bank and immediately took possession of all deposits in the bank.
The bank had
$209 billion in assets and $175.4 billion in deposits
at the time of the bankruptcy, the FDIC said in a statement.
It was not clear how much of the deposits were over the $250,000 insurance limit at this time.
Silicon Valley was heavily exposed to the tech industry and there is little chance of contagion in the banking sector as a whole, as the major banks have enough capital to avoid a similar situation. Silicon Valley Bank's financial health was increasingly in question this week after the bank announced plans to raise up to $1.75 billion to bolster its capital position amid concerns about higher interest rates and the economy.
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