The bank's 40-year reign and service to the tech sector came to an end within 48 hours.
The bank's 40-year reign came to an end within 48 hours due to a panic brought on by the very venture capital community that SVB had supported and served."Silicon Valley Bank, Santa Clara, California, was closed today by the California Department of Financial Protection and Innovation, which appointed the Federal Deposit Insurance Corporation as receiver," read FDIC's"To protect insured depositors, the FDIC created the Deposit Insurance National Bank of Santa Clara .
A reputable bank that had expanded alongside its technological clients saw a swift collapse as a result. Payroll issues are more complicated than simply gaining access to frozen cash because many of those services are provided by independent contractors that were collaborating with SVB.Ryan Gilbert, founder of venture firm Launchpad Capital. "No one has the answer."
The tech sector worries that some businesses could have trouble paying their employees while that procedure is still in progress.
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