Joe.My.God. LGBT News
The New York Times reports:
If there is one enduring axiom in banking, it is this: Don’t run out of money. Silicon Valley Bank, a lender to some of the biggest names in the technology world, did just that on Friday, becoming the largest bank to fail since the 2008 financial crisis.
The move put nearly $175 billion in customer deposits, including money from some of the biggest names in the technology world, under the control of the Federal Deposit Insurance Corporation.
It was an extraordinary denouement less than two days after the bank shocked Wall Street and its depositors with emergency moves to raise cash and stave off a collapse in the face of withdrawal requests and a precipitous decline in the value of its investment holdings.
CNN reports:
While relatively unknown outside of Silicon Valley, SVB was among the top 20 American commercial banks, with $209 billion in total assets at the end of last year, according to the FDIC.
But SVB catered primarily to to higher-risk tech startups that have recently been hurt by higher interest rates and dwindling venture capital. Its failure marks the largest shutdown of a US bank since 2008, when Washington Mutual fell during the financial crisis.
The bank partnered with nearly half of all venture-backed tech and health care companies in the United States, many of which pulled deposits out of the bank. SVB’s shares were halted Friday morning after falling more than 60% in premarket trading.
Breaking News: Silicon Valley Bank has been put under control of the federal government, becoming the largest bank to fail since the 2008 financial crisis. https://t.co/yQWmxOs3dA
— The New York Times (@nytimes) March 10, 2023
I’m working with my CA colleagues to address the Silicon Valley Bank crisis. We must make sure all deposits exceeding the FDIC $250k limit are honored. Banking is about confidence. If depositors lose confidence on the safety of their deposits over 250k then we are in trouble.
— Rep. Eric Swalwell (@RepSwalwell) March 10, 2023
The Federal Deposit Insurance Corporation has seized the assets of Silicon Valley Bank, the 16th-largest bank in the U.S. It’s the nation’s biggest bank failure since Washington Mutual during the height of the 2008 financial crisis. https://t.co/xBdUIS5tku
— The Associated Press (@AP) March 10, 2023