As the worst collapse of a US bank since 2008, US regulators have shut down Silicon Valley Bank (SVB) and taken control of its client deposits.
The actions were taken at a time when the company, a significant tech lender, was frantically trying to obtain money to cover a loss from the sale of assets harmed by rising interest rates.
Due to its problems, customers rushed to withdraw money, raising concerns about the health of the banking industry.
Authorities claimed their actions were taken to “guard insured depositors”.
Banking regulators in California, where the company is headquartered, stated that Silicon Valley Bank had “inadequate liquidity and insolvency” at the time they announced the takeover.
The 16th largest bank in the US, which has deposits totaling about $175 billion (£145 billion), has announced that the Federal Deposit Insurance Corporation (FDIC), which generally insures accounts up to $250,000, has assumed control of those funds.
According to the statement, bank locations will reopen and insured depositors may access their money “no later than Monday morning.” It also stated that uninsured depositors would get the proceeds from the sale of the bank’s assets.