Though, these withdrawals took place in such a rapid timeframe that Silicon Valley Bank essentially ran out of options to avoid total failure.
Various companies that manage payments, such as Upwork (the world’s top freelancing site) are advising users with Silicon Valley Bank to change their payment methods listed on the site to avoid issues with receiving their funds.
Per the California Department of Financial Protection and Innovation, Silicon Valley Bank now lacks necessary liquidity, hence facing total insolvency.
Many individuals and businesses with big money in Silicon Valley Bank understandably worry about what will come next for them. However, the FDIC confirmed those with deposits deemed as “insured” can access their funds on the morning of March 13.
These are funds that the FDIC took over since the shutdown of Silicon Valley Bank.
The Potential For More Problems
The failure of Silicon Valley Bank carries the potential to hurt vulnerable startup businesses with funds wrapped up in the institution.
