They become illiquid because they don't have access to their money that was in SVB. They can't make payroll, can't pay vendors and landlords. The employees will leave first. Vendors next.
But normally, they will be bought by another bank coming Monday and resume business.
The fdic assigns a buyer and pays the buyer, from what I understand.
Edit. I just realized, in the us, if there is no bidder, the fdic can close down the bank or run it itself.
