Thursday, July 9, 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

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.”

Defence minister Christopher Musa

Hot news Home top

Officers who wait for orders to kill terrorists will be treated as bandits: Defence Minister

Defence Minister Christopher Musa says security personnel do not need to wait for an order before engaging armed bandits or terrorists.

House of Representatives,

Heading 3

Reps urge Tinubu to act as Nigerians paid N2.23 trillion ransom to kidnappers

The House emphasised the need to strengthen financial intelligence and collaboration among relevant security.

Nigerian Upstream Petroleum Regulatory Commission [NUPRC]

NationWide

2024 Bid Round: NUPRC hands petroleum prospecting licences to 12 firms

NUPRC said the exercise marked another milestone in efforts to attract fresh investment into the upstream petroleum industry.

African Democratic Party (ADC)

Hot news Home top

ADC bars state chapters from receiving court processes, engaging lawyers

Mr Abdullahi said the party received reports that court processes relating to the ADC were being served on state chapters across the country.

Rainfall

Heading 4

NiMet predicts three-day cloudy, rainy atmosphere from Thursday

According to NiMet, strong winds may precede rain in areas where thunderstorms are likely.

Census

Heading 1

Stop guessing Nigeria’s population, UN tells FG

Ms Mafico reaffirmed UNFPA’s support for Nigeria’s next population and housing census.