Here are 10 facts about the Silicon Valley Bank Collapse
The Silicon Valley Bank was closed on Friday by California banking regulators. This is the biggest retail banking failure since the global financial crisis in 2008
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US regulators shuttered Silicon Valley Bank (SVB) on Friday and took control of its deposits, in what amounts to the biggest retail banking failure since the global financial crisis.
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The move came after a dramatic 48 hours that saw the high-tech lender's share price plummet amid a run on deposits by concerned customers.
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After making a huge fortune by investing in tech startups, Silicon Valley Bank invested most of its assets in US bonds. To bring down the inflation rates, the federal reserve last year began raising interest rates
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Startup funding also started to dry up after the Covid pandemic, resulting in a high number of the bank's clients withdrawing money.
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In a disclosure earlier this week, the bank said it had lost nearly $2 billion.
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After the bank's closure, nearly $175 billion of customer deposits are now under the control of the Federal Deposit Insurance Corporation (FDIC).
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The FDIC has created a new bank, the National Bank of Santa Clara, which will now hold all the assets of Silicon Valley Bank.
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Assuring the depositors, the FDIC said that they will have full access to their insured deposits after all the branches of the bank open on Monday morning
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SVB's abrupt demise has left legions of Silicon Valley entrepreneurs in the lurch and livid. In Washington, politicians are drawing up sides, with Biden administration officials