Silicon Valley Bank Closed
Silicon Valley Bank collapsed, today, and the FDIC (Federal Deposit Insurance Corporation) has taken control of the bank, which means that all of SVB deposits are in its control. Because I can shop CDs for my clients, (although, for my clients, none of you have this CD), here's what happens to CDs of a failed bank. CDs are FDIC insured and these clients are due all interest accrued until the day of closure. A list of all clients with these CDs goes to the FDIC and they will return the principle, in addition to the interest owed. According to my sources, in 2008 is took about 30 days to return CD proceeds to investors. It is not unusual for a few U.S. banks to fail in any given year, but this bank is the second biggest bank failure in U.S. history.