The California Department of Financial Protection and Innovation has taken control of Silicon Valley Bank, with the FDIC appointed as receiver due to concerns of "inadequate liquidity and insolvency.

"This decision was made shortly after trading in SVB was suspended following a drop in shares of over 60% following news of a planned $1.75 billion share sale to address financial issues. Attempts to raise capital failed, and by Friday, talks began to sell the bank, but deposit outflows made it difficult to assess the situation. Silicon Valley Bank UK has reassured clients that it is a separate entity with a separate balance sheet. With rising interest rates and a slowdown in VC funding, SVB's reliance on securities like US Treasuries has impacted profits. CEO Greg Becker assured venture capitalists that the bank has ample liquidity, but the panic could be a bigger risk to startups and the VC community. Bill Ackman called for a government bailout to protect depositors, not shareholders, while Mark Suster urged the VC community to quell the panic.