Regulators decided to shut the bank down two days after closing Silicon Valley Bank. Many depositors of Signature Bank began taking out money from their bank accounts. Signature Bank also had a large percentage of uninsured deposits. As a result, the California Department of Financial Protection and Innovation shut down Silicon Valley Bank.
Too many people tried to withdraw their money at the same time, and the bank became insolvent - its liabilities exceeded its assets. A lot of Silicon Valley Bank depositors were founders of tech startups and companies.
