FDIC Accidentally "Mistakenly" Discloses List of Giants Rescued in Silicon Valley Bank Crisis

After the collapse of Silicon Valley Bank, the Federal Deposit Insurance Corporation (FDIC) decision to provide guarantees for all accounts exceeding the federal deposit insurance limit of $250,000 not only saved thousands of small tech startups, but also helped large companies that were not affected by the Silicon Valley Bank crisis. This includes Sequoia Capital, which had $1 billion deposited in Silicon Valley Bank, and Kanzhun Technology, which owns platforms such as Kanzhun and Boss Zhipin and had over $900 million deposited in Silicon Valley Bank.

Since the bank's collapse, the FDIC has kept the list of related large companies confidential. This list was "mistakenly sent to the media" by the FDIC, which later requested that the media not disclose the list "because it includes confidential business or financial information." Nevertheless, the media that obtained the list chose to make it public.

Ironically, the US government referred to the FDIC's decision to guarantee all deposits as a "solution to protect American workers and small businesses and ensure the safety of our financial system." US Treasury Secretary Yellen believes that the government's response, including support for all depositors, is necessary:

American families rely on banks for housing finance, education investment, and other ways to improve their standard of living. Companies borrow from these institutions to start new companies and expand existing ones.

However, a significant amount of US taxpayers' money has flowed into the hands of giants who are "not short of money" and do not need government guarantees.

On Friday, June 23, the media revealed the following giants protected by FDIC:

1. Sequoia Capital

Sequoia Capital is known for supporting well-known tech companies such as Apple, Google, and WhatsApp. The $1 billion in assets the company had deposited in Silicon Valley Bank was only a small part of the $85 billion in assets it manages.

2. Kanzhun Technology

Chinese recruitment giant Kanzhun Technology had $902.9 million in deposits in Silicon Valley Bank. Before going public in the US in 2021, the company received strong support from Tencent and was also one of the largest Chinese IPOs in the US in 2021.

3. Altos Labs

Altos Labs is a life science startup dedicated to cell regeneration and had $680.3 million in deposits in Silicon Valley Bank. This privately held company has raised $3.27 billion from billionaires such as Amazon founder Bezos, Mubadala Investment Company, and other investors.

4. Marqeta

Payment startup Marqeta Inc. had $634.5 million in deposits in Silicon Valley Bank. The company acknowledged in a statement that it had "a significant amount of deposits" in Silicon Valley Bank, but had already transferred the funds to other banks.

Although Marqeta's decision to support regulatory agencies in guaranteeing all bank deposits will not affect our ability as a company to execute and fulfill our financial obligations.

5. IntraFi Network

IntraFi Network, which provides deposit services to financial institutions, has deposits worth $410.9 million at Silicon Valley Bank. However, the company stated in a statement that it did not actually deposit any of its own funds at Silicon Valley Bank, nor is it a customer of the bank. According to IntraFi, the money belongs to nearly 2,000 different depositors, and their deposits were fully protected when Silicon Valley Bank collapsed.

6. Circle Internet Financial

Cryptocurrency stablecoin company Circle Internet Financial Ltd. previously disclosed its deposits at Silicon Valley Bank, which accounted for 8.2% of the support for its dollar reserves. The news that the stablecoin, which aims to maintain a 1:1 peg with the US dollar, had deposits at Silicon Valley Bank briefly deviated from the $1 level. According to FDIC data, the company's deposits at Silicon Valley Bank amounted to $3.34 billion.

7. Roku

Streaming set-top box manufacturer Roku Inc. previously revealed that about 26% of its cash and cash equivalents were held at Silicon Valley Bank. According to FDIC data, the company's deposits at Silicon Valley Bank amounted to approximately $420 million.

8. Bill.com

Fintech company Bill.com previously disclosed that it has approximately $670 million in funds at Silicon Valley Bank. The company stated that this amount includes approximately $300 million in deposits and $370 million belonging to customers. FDIC documents list Bill.com's deposits at Silicon Valley Bank as $761.1 million.

9. Silicon Valley Bank Financial Group

Silicon Valley Bank and its parent company, Silicon Valley Bank Financial Group, have $4.6 billion in deposits at Silicon Valley Bank. Silicon Valley Bank Financial Group argued in its bankruptcy case that its parent company's deposits of at least $2 billion at the bank should be returned. Federal regulators said Silicon Valley Bank Financial Group must apply to the bank's receiver for the funds.