Silicon Valley Bank Collapses, Enters FDIC Receivership

Silicon Valley Bank collapsed into Federal Deposit Insurance Corp. receivership on Friday, after its long-established customer base of tech startups grew worried and yanked deposits.

The California Department of Financial Protection and Innovation in a statement Friday said it has taken possession of Silicon Valley Bank and appointed the FDIC as receiver, citing inadequate liquidity and insolvency.

Receivership typically means a bank’s deposits will be assumed by another, healthy bank or the FDIC will pay depositors up to the $250,000 insured limit.

Problems mounted for the b...