March 13, 2023 | less than a minute read

SVB Collapse – Closing Your Account

Michael Cohen

Partner

Michael Cohen

Partner

Over the last several days, the Federal Deposit Insurance Corporation, (the FDIC), has provided a lot of (sometimes conflicting) information for depositors of Silicon Valley Bank (SVB).

On Sunday, March 12, the FDIC abandoned plans to reopen SVB as the "Deposit Insurance National Bank of Santa Clara" (DNIB), and instead transferred all assets of SVB, including those previously transferred to DNIB, to Silicon Valley Bank, N.A., a federally chartered "bridge bank" intended to continue (or "bridge") the business of SVB as the FDIC tries to sell the bank. Our sympathies go out to our friends at Bridge Bank, also a venture-oriented bank that is a division of Western Alliance Bank, which is NOT a "bridge bank"....

For SVB depositors looking to close their accounts, the FDIC had previously provided the information that appears below. If you have questions about how to handle accounts at SVB in the United States or the United Kingdom, please contact a member of your Brown Rudnick client team.

HOW DO I CLOSE MY ACCOUNT? There are four ways to close your account: Create a bill pay or automated payment to another financial institution; Direct a wire transfer to another financial institution; Write a check for your available balance, then deposit that check into an account at another financial institution; or Ask for a “no fee” Cashier's check or Money Order by visiting your local branch during normal business hours. NOTE: Please be sure to leave enough funds in your account to cover any outstanding checks. If you prefer to speak with an FDIC Claims Agent call 1-866-799-0959 to schedule a telephone appointment.