Senator Cortese Urges FDIC to Protect Silicon Valley Bank Depositors

Senator Dave Cortese joined colleagues on Sunday in calling on the Federal Deposit Insurance Corporation (FDIC) to protect all the depositors of the former Silicon Valley Bank (SVB) and to let those depositors access all their funds as soon as possible. A joint letter from State Senators to the FDIC can be found below. Senator Cortese also issued this statement:

“We are deeply concerned about all the depositors of SVB,” said Senator Cortese (D-San Jose). “Immediate action by the FDIC is needed, not just for workers at the center of Silicon Valley’s innovation hub, but for the entire banking system in the greater Bay Area, and all the workers and families that system touches. Let’s not waste a minute.”

Background: In the largest bank failure since 2008, Silicon Valley Bank was closed on Friday by the California Department of Financial Protection and Innovation, which was appointed by the FDIC as the bank’s receiver. The collapse occurred after many of SVB’s customers – largely workers in the tech sector and venture-backed companies – began withdrawing their funds amid concern over the bank’s solvency. The FDIC reported that it had replaced SVB with the newly-created Deposit Insurance National Bank of Santa Clara (DINB) to protect its depositors.