Hard choices for biotechs as SVB falls into FDIC receivership

The regulatory shutdown of Silicon Valley Bank and the ensuing establishment of a bridge bank may offer biotechs and VCs some temporary stability after a panicked run on SVB late this week, but questions remain unresolved as to how and where the biotech sector will protect its cash for the long term.

The FDIC said late Friday morning that the California Department of Financial Protection and Innovation (DFPI) had closed the bank, with the FDIC as receiver. The insurer formed the Deposit Insurance National Bank of Santa Clara to protect existing deposits...