Daily Mail: Silicon Valley Bank is SEIZED by regulators after run on deposits caused lender to collapse in largest US bank failure since Great Recession – as panic over tech industry slowdown spreads to Wall Street
* Silicon Valley Bank was shuttered by financial regulators on Friday morning
* The bank in Santa Clara, California had been the 18th largest bank in the US
* FDIC says insured deposits up to $250,000 will be available by Monday
Silicon Valley Bank has been seized by financial regulators after a run on deposits tipped the bank into collapse, in the largest US bank failure since the Great Recession in 2008.
California state regulators shuttered the bank on Friday, and the Federal Deposit Insurance Corporation (FDIC) immediately took control of the bank’s $209 billion in assets and $175.4 billion in deposits.
The bank based in Santa Clara, California had been the 18th largest bank in the US, and primarily catered to the tech startups and wealthy entrepreneurs of Silicon Valley.
Read more ….
WNU Editor: This collapse involves $209 billion in assets and $175.4 billion in deposits. Of the $174 billion in deposits, $151.5 billion are uninsured!!!!! Not surprising. Contagion fears are growing …. Silicon Valley Bank meltdown sparks contagion fears: ‘We found our Enron’ (NYPost).
Update: People are panicking …. Silicon Valley Bank’s Manhattan branch calls COPS on investors trying to pull their cash out as Boston tech CEO with $10M in bank describes ‘worst 18 hours of my life’: Lender is SEIZED by regulators in largest US bank failure since Great Recession (Daily Mail)
Update #2: Other banks are facing problems …. Yellen says Treasury Department ‘carefully’ watching crisis at ‘a few banks’ (Yahoo Finance). See the video below:
Major U.S. Bank Has Collapsed In Largest US Bank Failure Since The Great Recession
Silicon Valley Bank Fails After Run by Venture Capital Customers — New York Times
Silicon Valley Bank is seized by US after historic failure –– AP
Banking regulators shutter SVB, move quickly to avert crisis — Reuters
Silicon Valley Bank is shut down by regulators in biggest bank failure since global financial crisis — CNBC
Silicon Valley Bank collapses after failing to raise capital — CNN
Game Over: FDIC Shutters Silicon Valley Bank, Appoints Receiver — Zero Hedge
Analysis: Californian tech bank SVB sows global fear about rising cost of money — Reuters
Explainer: What caused Silicon Valley Bank’s failure? — Reuters