The California Department of Financial Protection and Innovation today closed Silicon Valley Bank, a storied financial institution that counted many venture-backed startups as clients.

The move follows a series of developments that cast doubt on the company’s financial stability. On Wednesday, Silicon Valley Bank disclosed that it had taken a $1.8 billion loss on a securities sale. The next day, shares of the company cratered and reports emerged that some venture capital firms were urging startups to withdraw their funds.

California regulators have appointed the Federal Deposit Insurance Corp. as the receiver for Silicon Valley Bank. A receiver is an organization tasked with managing the assets of a financially unstable company. When the financially unstable company is a bank, the FDIC is responsible for carrying out the task.

The FDIC, a government agency that also insures bank deposits against losses, is restructuring parts of Silicon Valley Bank’s business operations. 

The agency moved all insured customer deposits to a new company called the Deposit Insurance National Bank of Santa Clara, or DINB. The FDIC stated that customers will receive full access to insured deposits by Monday morning. 

For uninsured depositors, the FDIC will issue an “advance dividend” within a next week. The agency plans to sell off Silicon Valley Bank’s assets to facilitate additional withdrawals. “As the FDIC sells the assets of Silicon Valley Bank, future dividend payments may be made to uninsured depositors,” the agency stated in a press release.

Concerns over Silicon Valley Bank’s prospects emerged late Wednesday after the company disclosed that it had sold $21 billion worth of U.S. Treasury Bonds and other securities. The company took a $1.8 billion loss on the sale. The same day it disclosed the loss, Silicon Valley Bank announced that the value of new client deposits made in February had fallen short of projections.

Many of the company’s clients are startups and venture capital firms. According to Silicon Valley Bank’s website, it worked with about half of all venture-backed tech and life sciences startups in the U.S.

Shares of Silicon Valley Bank’s parent company, SVB Financial Group Inc., plummeted more than 60% on Thursday following the disclosure of its $1.8 billion loss and lower-than-expected deposits. 

The bank planned to raise $2.25 billion through a stock sale to shore up its finances. The sale would have consisted of a $1.75 billion public equity offering and a $500 million investment from private equity firm General Atlantic. This morning, CNBC reported that the fundraising effort proved unsuccessful. 

Silicon Valley Bank reportedly also attempted to sell itself, but struggled to find a buyer because “deposit outflows were outpacing the sale process.” Sources told The Information late Thursday that some venture capital firms were encouraging portfolio companies to withdraw their deposits. Silicon Valley Bank Chief Executive Officer Greg Becker reportedly told tech investors that the company has “ample liquidity to support our clients with one exception: If everyone is telling each other SVB is in trouble, that would be a challenge.”

FDIC stated today in its announcement of Silicon Valley Bank’s closure that services will resume for customers no later than Monday morning. The bank’s 17 branches in California and Massachusetts, including its head office, will continue to operate.

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