Friday, November 6, 2026

Silicon Valley Bank collapses, U.S. govt takes over

The bank, which serves some of the world’s most well-known tech investors, became one of the biggest banks to fail since the global financial crisis of 2008.

• March 11, 2023
Silicon Valley Bank
Silicon Valley Bank [Credit: Getty Images]

The United States government has taken control of Silicon Valley Bank after it collapsed on Friday.

The bank, which serves some of the world’s most well-known tech investors, became one of the biggest banks to fail since the global financial crisis of 2008.

The tech lender was shut down by California regulators, who then gave The Federal Deposit Insurance Corporation control of it. As receiver, the FDIC will normally sell off the bank’s assets to reimburse its clients, including depositors and creditors.

Less than two days before, the bank had startled Wall Street and its depositors with desperate attempts to borrow money in order to prevent a collapse due to withdrawal requests and a sharp decrease in the value of its investment holdings. 

New York Times reports that a person with knowledge of the conversations said that as of Friday morning, the bank was collaborating with consultants on a prospective sale and had stopped trading in its shares following a sharp decline.

The National Bank of Santa Clara was established by the FDIC to hold the deposits and other assets of the failing bank. In a press release, the regulator stated that the new organisation would begin operations on Monday and that cheques written by the defunct  bank would continue to be honored.

Customers whose accounts exceeded the $250,000 insurance cap set by the F.D.I.C. would receive certificates for their uninsured funds, making them among the first in line to receive repayment from funds recovered while the F.D.I.C. is holding Silicon Valley Bank in receivership, even if only partially.

Although Silicon Valley Bank’s problems have been building for more than a year, they suddenly worsened this week. The Santa Clara, California-based bank was established in 1983 and was a preferred lender for entrepreneurs and their executives.

We have recently deactivated our website's comment provider in favour of other channels of distribution and commentary. We encourage you to join the conversation on our stories via our Facebook, Twitter and other social media pages.

More from Peoples Gazette

Nigerian Bar Association

States

Independence: NBA urges Nigerians to expect better future

The NBA said that ordinary Nigerians should be deriving benefit from the subsidy removal rather than hardship.

farmers

Agriculture

FG tasks ECOWAS on leveraging financing strategies for agroecology

The federal government has urged stakeholders in the agriculture and finance sectors in the West Africa region to leverage financing strategies to enhance agroecology practices

Katsina State

Politics

Katsina youths pledge to deliver over 2 million votes to Atiku

“Katsina State is Atiku’s political base because it is his second home.”

Mining site

Economy

Kano govt warns mining firms against abandoning sites without reclamation

The Kano government has warned mining companies operating in the state not to abandon mining sites without carrying out mandatory environmental reclamation measures.

Nyesom Wike in PDP attire

Politics

Cross River PDP ratifies Bullem as chairman, endorses Wike’s coalition

PDP in Cross River has ratified Francis Bullem as its substantive chairman and endorsed the Rainbow Coalition led by Nyesom Wike.

Yobe State Governor, Mai Mala Buni

Politics

Gov Buni’s achievements make APC’s 2027 campaign easier: Commissioner

Kaigama Umar, Yobe’s commissioner for commerce, industry and tourism, says Governor Mai Buni’s developmental achievements will shape the party’s election campaign.

Lagos market

Rights

LASCOPA resolves 10,720 complaints, secures N759 million redress

LASCOPA says it has secured ₦759.35 million in consumer redress and resolved 10,720 complaints in six years.

Africa

South Africa extend AACT lead as Kenya’s Muthomi tops individual standings

The defending champions returned a combined score of 309 after 36 holes on Thursday to maintain their lead in the week-long championship.

Showbiz

Shettima challenges Nigerians, other Africans to monetise creative power

According to the vice-president, Nigeria’s hosting of CANEX Weekend for the first time recognises the country’s growing influence in the creative economy.