Silicon Valley Bank failed after running deposits

The Federal Deposit Insurance Corporation said Friday that it will acquire Silicon Valley Bank, a 40-year-old institution based in Santa Clara, California.

The bank failure is the second largest in US history and the largest after the 2008 financial crisis.

The move put some $175 billion in customer deposits under the regulator's control.

While the rapid collapse of the country's 16th largest bank brought back memories of a decade of global financial panic.

Half a year ago, this did not immediately allay fears of widespread havoc in the financial industry or the global economy.

The Silicon Valley bank failure came two days after emergency steps were taken to handle withdrawal requests.

The bank, which had $209 billion in assets at the end of 2022, was working with financial advisors as of Friday morning to find a buyer.

Trading in shares of at least five banks was halted repeatedly throughout the day as their sharp losses raised the volatility limits of the stock exchange.

When California bank IndyMac failed in July 2008, it, like Silicon Valley Bank, did not have an immediate buyer.