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Silicon Valley Bank is shut down by regulators in biggest bank failure since glo
Ptarmigan:
Silicon Valley Bank is shut down by regulators in biggest bank failure since global financial crisis
https://www.cnbc.com/2023/03/10/silicon-valley-bank-is-shut-down-by-regulators-fdic-to-protect-insured-deposits.html
--- Quote ---Financial regulators have closed Silicon Valley Bank and taken control of its deposits, the Federal Deposit Insurance Corp. announced Friday, in what is the largest U.S. bank failure since the global financial crisis more than a decade ago.
The collapse of SVB, a key player in the tech and venture capital community, leaves companies and wealthy individuals largely unsure of what will happen to their money.
According to press releases from regulators, the California Department of Financial Protection and Innovation closed SVB and named the FDIC as the receiver. The FDIC in turn has created the Deposit Insurance National Bank of Santa Clara, which now holds the insured deposits from SVB.
--- End quote ---
Silicon Valley Bank is the largest bank failure since Washington Mutual in 2008.
--- Quote ---BIGGEST BANK FAILURES SINCE 2001
BANK ASSETS DEPOSITS
WASHINGTON MUTUAL $307 billion $188 billion
SILICON VALLEY BANK $212 billion $173 billion
INDYMAC $32 billion $19 billion
COLONIAL BANK $25 billion $20 billion
GUARANTY BANK $13 billion $12 billion
--- End quote ---
Ptarmigan:
Here’s how the second-biggest bank collapse in U.S. history happened in just 48 hours
https://www.cnbc.com/2023/03/10/silicon-valley-bank-collapse-how-it-happened.html
--- Quote ---On Wednesday, Silicon Valley Bank
was a well-capitalized institution seeking to raise some funds.
Within 48 hours, a panic induced by the very venture capital community that SVB had served and nurtured ended the bank’s 40-year-run.
Regulators shuttered SVB Friday and seized its deposits in the largest U.S. banking failure since the 2008 financial crisis and the second-largest ever. The company’s downward spiral began late Wednesday, when it surprised investors with news that it needed to raise $2.25 billion to shore up its balance sheet. What followed was the rapid collapse of a highly-respected bank that had grown alongside its technology clients.
Even now, as the dust begins to settle on the second bank wind-down announced this week, members of the VC community are lamenting the role that other investors played in SVB’s demise.
--- End quote ---
How it happened.
Drafe Hoblin:
My very, very first thought about the SVB-failure was that it seems 'localized'.
But if anything sparks a villagers with torches reaction, it's a bank-run.
So the news is a bit unsettling for me and a lot of people heading into the weekend.
Ptarmigan:
--- Quote from: Drafe Hoblin on March 10, 2023, 10:53:43 PM ---My very, very first thought about the SVB-failure was that it seems 'localized'.
But if anything sparks a villagers with torches reaction, it's a bank-run.
So the news is a bit unsettling for me and a lot of people heading into the weekend.
--- End quote ---
It looks localized, but it is not. Many tech companies use Silicon Valley Bank to meet payroll.
Drafe Hoblin:
The Nikkei Index will open down 1.67% presently.
Musk is teasing that he may buy SVB.
I bet conversations about corporate-wokeness will be changing drastically from here on in.
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