The moves came as the firm, a key tech lender, was scrambling to raise money to plug a loss from the sale of assets affected by higher interest rates.
BBC reports its troubles prompted a rush of customer withdrawals and sparked fears about the state of the banking sector.
Officials said they acted to "protect insured depositors".
Silicon Valley Bank faced "inadequate liquidity and insolvency", banking regulators in California, where the firm has its headquarters, said as they announced the takeover.
