Silicon Valley bank collapses, FDIC takes over

Silicon Valley Bank, which primarily serves the tech sector, collapsed on Friday in the second-largest bank failure in U.S. history, after a run on deposits derailed plans to raise fresh capital.

The Federal Deposit Insurance Corp., or FDIC, said it had taken over the bank through its newly created entity, Deposit Insurance National Bank of Santa Clara. All deposits at Silicon Valley Bank have been transferred to the new bank, the FDIC said.

Insured depositors can get their money back Monday morning, the FDIC said. Depositors whose deposits exceed the insured limit will receive a certificate of bankruptcy.

Silicon Valley Bank, once the darling of the banking world, quickly collapsed as its shares plummeted and customers ran out after announcing huge losses on its bond holdings and plans to increase capital to bolster its balance sheet.