(Ottawa) The Superintendent of Financial Institutions Canada has taken temporary control of the assets of the Canadian branch of Silicon Valley Bank.
He also signified his intention to take permanent control of the institution’s assets, in addition to asking the Attorney General of Canada to seek a winding-up order.
Silicon Valley Bank, the financial institution best known for its connections to emerging global tech companies, went bankrupt on Friday.
His downfall is the largest failure by a financial institution since the collapse of Washington Mutual at the height of the 2008 financial crisis.
Although headquartered in the United States, Silicon Valley Bank operates in Canada as a foreign bank branch, out of Toronto. In Canada, it primarily provides loans to large corporations and does not accept commercial or retail deposits.
“The Superintendent has taken this action to preserve the value of the assets held at the branch in light of the California Department of Financial Protection and Innovation’s decision to close Silicon Valley Bank located in Santa Clara, California,” explains the Office of the Superintendent of Financial Institutions in a press release.
With information from The Associated Press