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In
a statement, the FDIC said all customers of SVB would
automatically become customers of the bridge bank, which will
hold "normal banking hours and activities, including online
banking."
The regulator has also tapped former Fannie Mae head Tim
Mayopoulos as the chief executive officer of the newly created
entity, named Silicon Valley Bank N.A., it said.
"All depositors of the institution will be made whole," FDIC
said, adding that no bank losses would fall on U.S. taxpayers.
"These actions will protect depositors and preserve the value of
the assets and operations of Silicon Valley Bank, which may
improve recoveries for creditors and the DIF," it added.
The move comes as regulators and the White House aim to shore up
confidence in the banking sector after regulators shuttered the
startup-focused lender SVB on Friday, following a run on its
deposits that created a dearth of capital.
The collapse of SVB, the biggest bank to fail since the
financial crisis of 2008, has crippled stocks and triggered
concerns of a contagion throughout global markets.
Oppenheimer, in a note to investors on Monday, said that the
collapse was likely to drive deposits to larger "safety" banks.
U.S. President Joe Biden is scheduled to address the issue after
8 a.m. (1200 GMT).
(Reporting by Susan Heavey in Washington; Additional reporting
by Mahnaz Yasmin and Rishabh Jaiswal in Bengaluru; editing by
John Stonestreet, Louise Heavens and Chizu Nomiyama)
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