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The collapse of Silicon Valley Bank, the biggest banking failure since 2008: 10 facts

March 11, 2023
Sezarr

The Silicon Valley bank was shut down by California regulators on Friday.

New Delhi:
The Silicon Valley bank best known for lending money to some of the biggest technology startups collapsed on Friday, sending investors and depositors into a frenzy. Due to the closure, there has been a huge decline in the global markets today.

Here are 10 facts about the collapse of Silicon Valley Bank:

  1. Silicon Valley Bank was shut down on Friday by California banking regulators. it is biggest retail banking failure Since the global financial crisis in 2008.

  2. US regulators on Friday shut down Silicon Valley Bank (SVB) and took control of its deposits in the biggest retail banking failure since the global financial crisis.

  3. The move came after a dramatic 48 hours that saw the hi-tech lender’s share price plummet amid a run on deposits by concerned customers.

  4. After amassing vast wealth by investing in tech startups, the Silicon Valley bank invested most of its assets in US bonds. To drive down inflation rates, the Federal Reserve began raising interest rates last year, which resulted in bond prices going down.

  5. Startup funding also began to dwindle after the Covid pandemic, resulting in a large number of bank customers withdrawing money. To honor their requests, Silicon Valley Bank was forced to sell some of its investments, even though they had declined in value.

  6. In a disclosure earlier this week, the bank said it had incurred losses of around $2 billion.

  7. after the bank closes $175 billion in customer deposits Now under the control of the Federal Deposit Insurance Corporation (FDIC).

  8. The FDIC has created a new bank, National Bank of Santa Clara, which will now own all of Silicon Valley Bank’s assets.

  9. The FDIC assured depositors that they would have full access to their insured deposits once all bank branches opened on Monday morning. The financial body also said that old bank checks will also be honoured.

  10. svb has passed away suddenly Large number of Silicon Valley entrepreneurs are in midair And furious. In Washington, politicians are taking sides, with Biden administration officials expressing “full confidence” in the regulators.