In the midst of all the concerns about the bank’s stability, some venture capital funds, such as Peter Thiel’s Founders Fund, recommended portfolio companies pull all their money out of this bank, while the CEO of the company advised its clients to calm down, adding that the bank has ample liquidities to cover the losses.
SVB Financial attempted to sell itself after many failed attempts at raising capital, but the plans were soon abandoned as no one was interested in buying.
The FDIC then created the National Bank of Santa Clara to make sure that all insured depositors are protected, giving them access to their insured deposits in a maximum of three days.