People, and especially businesses, that had accounts with Silicon Valley Bank, can breathe a little easier today. After a run on its accounts, SVB collapsed on Friday and was taken over by the FDIC . However, late on Sunday, the US government’s Federal Reserve said that all account owners that were at the bank would be able to access their money today, according to CNBC. That’s also the same deal that will apply to all accounts at the crypto-themed Signature Bank, which closed on Sunday.
SVB was the 16th biggest bank in the US before its shutdown, and it’s now the second biggest bank failure in US history. It catered to a lot of tech companies and startups, who until Sunday were wondering if they would lose nearly everything they had in the bank. Normally, the FDIC only insures up to $250,000 for each account. While customers with accounts will be safe to get their money, SVB shareholders will lose their investments.
Roku, the smart TV company, revealed on Friday that it had 26 percent of its cash at SVB. The gaming company Roblox announced that 5 percent of its $3 billion cash reserve was in SVB. Other smaller startup companies had nearly all of their money in the failed bank.
The bank also had a branch in the UK that offered services to many tech startups. On Monday, HSBC announced it would buy Silicon Valley Bank UK for £1 ($1.21), and said that its customers “can continue to bank as usual”.