Silicon Valley Bank is shut down by regulators in biggest bank failure since global financial crisis
Financial regulators have closed Silicon Valley Bank and taken control of its deposits, the Federal Deposit Insurance Corp. announced Friday, in what is the largest U.S. bank failure since the global financial crisis more than a decade ago.
The collapse of SVB, a key player in the tech and venture capital community, leaves companies and wealthy individuals largely unsure of what will happen to their money.
According to press releases from regulators, the California Department of Financial Protection and Innovation closed SVB and named the FDIC as the receiver. The FDIC in turn has created the Deposit Insurance National Bank of Santa Clara, which now holds the insured deposits from SVB.
The FDIC said in the announcement that insured depositors will have access to their deposits no later than Monday morning. SVB’s branch offices will also reopen at that time, under the control of the regulator.
According to the press release, SVB’s official checks will continue to clear.
A Brinks armored truck sits parked in front of the shuttered Silicon Valley Bank (SVB) headquarters on March 10, 2023 in Santa Clara, California.
Justin Sullivan | Getty Images
The FDIC’s standard insurance covers up to $250,000 per depositor, per bank, for each account ownership category. The FDIC said uninsured depositors will get receivership certificates for their balances. The regulator said it will pay uninsured depositors an advanced dividend within the next week, with potential additional dividend payments as the regulator sells SVB’s assets.
Whether depositors with more than $250,000 ultimately get all their money back will be determined by the amount of money the regulator gets as it sells Silicon Valley assets or if another bank takes ownership of the remaining assets. There were concerns in the tech community that until that process unfolds, some companies may have issues making payroll.
As of the end of December, SVB had roughly $209 billion in total assets and $175.4 billion in total deposits, according to the press release. The FDIC said it was unclear what portion of those deposits were above the insurance limit.
The last U.S. bank failure of this size was Washington Mutual in 2008, which had $307 billion in assets.
Biggest bank failures since 2001
| Bank | Assets | Deposits |
|---|---|---|
| Washington Mutual | $307 billion | $188 billion |
| Silicon Valley Bank | $212 billion | $173 billion |
| IndyMac | $32 billion | $19 billion |
| Colonial Bank | $25 billion | $20 billion |
| Guaranty Bank | $13 billion | $12 billion |
Source: FDIC/FactSet
SVB was a major bank for venture-backed companies, which were already under pressure due to higher interest rates and a slowdown for initial public offerings that made it more difficult to raise additional cash.
The closure of SVB would impact not only the deposits, but also credit facilities and other forms of financing. The FDIC said loan customers of SVB should continue to make their payments as normal.
The move represents a rapid downfall for SVB. On Wednesday, the bank announced it was looking to raise more than $2 billion in additional capital after suffering a $1.8 billion loss on asset sales.
A notice hangs on the door of Silicon Valley Bank located in San Francisco, California, U.S. March 10, 2023.
Staff | Reuters
The shares of parent company SVB Financial Group fell 60% Thursday, and dropped another 60% in premarket trading Friday before being halted.
CNBC’s David Faber reported Friday morning that the efforts to raise capital had failed and that SVB had pivoted toward a potential sale. However, a rapid outflow of deposits was complicating the sale process.
While many Wall Street analysts have argued that the struggles for SVB are unlikely to spread to the broader banking system, shares of other midsized and regional banks were under pressure Friday.
Treasury Secretary Janet Yellen said during testimony before the House Ways and Means Committee on Friday morning that she was “monitoring very carefully” developments at a few banks. Yellen made her comments before the FDIC announcement.
Shortly after leaving Capitol Hill, Yellen convened a meeting of top officials at the Fed, the FDIC and the Comptroller of the Currency specifically to discuss the situation at SVB.
The logo of Japanese company SoftBank Group is seen outside the company’s headquarters in Tokyo on January 22, 2025.
Kazuhiro Nogi | Afp | Getty Images
Shares of SoftBank Group plunged as much as 9.17% Wednesday, as technology stocks in Asia declined, tracking losses in U.S. peers overnight.
The Japanese tech-focused investment firm saw shares drop for a second consecutive session, following its announcement of a $2 billion investment in Intel. Intel shares rose 6.97% to close at $25.31 Tuesday stateside.
SoftBank Group shares
Other Japanese tech stocks also declined, with semiconductor giant Advantest falling as much as 6.27%. Meanwhile, shares in Renesas Electronics and Tokyo Electron were last seen trading 2.46% and 0.75% lower, respectively.
Technology companies in South Korea, Taiwan and Hong Kong, also fell after U.S. tech stocks dropped overnight spurred by declines in artificial intelligence darling Nvidia‘s shares.
U.S. Commerce Secretary Howard Lutnick is considering the federal government taking equity stakes in semiconductor companies that get funding under the CHIPS Act for building plants in the U.S, sources familiar with the matter told Reuters. The U.S. CHIPS and Science Act seeks to boost the country’s semiconductor industry, scientific research and innovation.
Shares of Taiwanese chip company TSMC and manufacturer Hon Hai Precision Industry — known globally as Foxconn — declined 1.69% and 2.16%, respectively. TSMC manufactures Nvidia’s high-performance graphics processing units that help power large language models, while Foxconn has a strategic partnership with Nvidia to build “AI factories.”
Meanwhile, South Korean tech stocks mostly fell with shares of chipmaker SK Hynix down 3.33%. Samsung Electronics, however, rose 0.75%.
TSMC, Samsung and SK Hynix are among companies that have received funding under the CHIPS Act.
Over in Hong Kong, the Hang Seng Tech index lost 0.87% in early trade.
The worst performing stocks on the index were Kuaishou Technology which declined 4.8%, JD Health International which dropped 3.31% and Horizon Robotics which lost 2.29%.
Losses were also seen tech majors Alibaba Group, down 1.44%, and Xiaomi Corp which lost 1.34%.
CEO of Palantir Technologies Alex Karp attends the Pennsylvania Energy and Innovation Summit on the campus of Carnegie Mellon University in Pittsburgh, Pennsylvania on July 15, 2025.
Andrew Caballero-reynolds | Afp | Getty Images
Palantir‘s stock slumped more than 9% on Tuesday, falling for a fifth straight day to continue its pullback from all-time highs.
The artificial intelligence software provider’s stock has slid more than 15% over the last five trading sessions, after a stellar earnings report earlier this month propelled shares to all-time highs. The report was Palantir’s first-ever $1 billion revenue quarter.
Tuesday’s dip coincided with a broader market pullback.
Palantir is the most significant gainer to date in the S&P 500 in 2025, up more than 100%.
Shares have more than doubled as the company benefits from ongoing AI enthusiasm, scooping up government contracts with President Donald Trump pushing to overhaul agencies.
Palantir’s ascent has pushed the company into a list of top 10 U.S. tech firms and 20 most valuable U.S. companies, while also making shares incredibly expensive to own. Its forward price-to-earnings ratio, which tracks future earnings relative to share price, has soared past 245 times.
By comparison, technology giants such as Microsoft and Apple carry a P/E of nearly 30 times and rake in significantly greater quarterly revenues. Meta‘s and Alphabet‘s P/E ratios hover in the 20s.
Ali Ghodsi, CEO of Databricks speaks on CNBC.
CNBC
Databricks has just entered an exclusive club.
The data analytics software vendor said Tuesday that it’s raising a funding round that values the company at over $100 billion. That would make Databricks just the fourth private company to eclipse the $100 billion mark, following SpaceX, ByteDance and OpenAI, according to data from CB Insights.
Databricks CEO Ali Ghodsi told CNBC’s Brian Sullivan that the total round will exceed $1 billion. The company was last valued by private investors at $62 billion in a $10 billion financing round late last year.
In June, Databricks executives told investors the company was forecasting $3.7 billion in annualized revenue by July, with 50% year-over-year growth.
Snowflake, one of Databricks’ top rivals, is expected to generate $4.5 billion in revenue for the fiscal year that ends in January, representing annual growth of 25%, according to LSEG. Snowflake currently has a market cap of about $65 billion. Other competitors include cloud providers such as Amazon and Microsoft, which are also Databricks partners.
Ghodsi said he heard from a lot of interested investors following Figma’s IPO late last month. Shares of the design software company more than tripled in their New York Stock Exchange debut, a sign that public investors are seeking out tech offerings after in extended lull in the IPO market.
“My phone was blowing up,” Ghodsi said on Tuesday. “So yes, there’s definitely been a big push from outside.”
Figma shares have since retreated from their initial $115.50 closing price. The stock is trading at about $70, still more than double the $33 IPO price.
Ghodsi said the round will help Databricks invest in products that clients can tap when using artificial intelligence models.
Founded in 2013 and based in San Francisco, Databricks ranked third on CNBC’s 2025 Disruptor 50 list. As of June, the company employed 8,000 people. Existing investors Andreessen Horowitz, Insight Partners Thrive Capital and WCM Investment Management are buying shares, a spokesperson said.
WATCH: Databricks CEO on AI: VCs are wondering if agentic AI will actually automate work
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