FDIC backstopped Sequoia and other bigger companies when it covered uninsured deposits at Silicon Valley Bank: Bloomberg report

The Federal Deposit Insurance Co.'s guarantee of uninsured deposits at Silicon Valley Bank benefitted not only thousands of small tech startups, but it also provided a backstop for larger players such as venture capital firm Sequoia Capital, according to a report by Bloomberg on Friday. When the FDIC moved to guarantee accounts above the $250,000 federal deposit insurance threshold in its March takeover of Silicon Valley Bank, it also covered $1 billion of uninsured deposits held by Sequoia and more than $900 million from Kanzhun Ltd., a technology company that owns the China-based job-posting app Boss Zhipin, the report said. The report said the FDIC told them it released an unredacted list of depositors by mistake and asked Bloomberg to destroy it and not share it. The FDIC released the document to Bloomberg following a Freedom of Information Act request from the news organization. The FDIC did not comment on the list after a lawyer for the government said it had intended to withhold details of the document due to the confidential commercial and financial information contained in it. A Sequoia spokesperson did not comment, Bloomberg reported.

-Steve Gelsi

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06-23-23 0906ET

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