On Monday March 13, 2023, the FDIC announced the creation of Silicon Valley Bridge Bank, N.A., a full-service FDIC-operated 'bridge bank.' All deposits, both insured and uninsured, were transferred to the bridge bank in a move that allowed depositors to have full access to their funds. The press release announcing the creation of the bridge bank notes that all banking services have resumed, including online banking and access to funds by ATM, debit cards, and writing checks.
The FDIC has also posted updated FAQs on its website confirming that direct deposits and autopay will continue to operate and that checks will continue to clear. Customers with lines of credit are instructed to contact Silicon Valley Bridge Bank regarding the status of those credit arrangements. Customers with a loan in process are instructed to contact their current loan officer. The guidance notes that loan payments should continue to be made as scheduled.
In public statements on LinkedIn,the newly appointed CEO of the bridge bank, Tim Mayopoulos, indicated that the bank is open and conducting business as usual and is making new loans and fully honoring existing credit facilities. The message notes that both existing and new deposits are now fully protected by the FDIC and the bank is actively opening new accounts of all sizes.
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