People line up outside of the shuttered Silicon Valley Bank (SVB) headquarters on Main Santa Clara, California. Its stunning, and seemingly rapid, fall is the largest shutdown of a US bank since Washington Mutual in 2008. 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. They have been hurt by higher interest rates and dwindling venture capital. Though experts quelled fears of a wider contagion, the bank’s collapse could have significant ramifications on the startup and tech sectors.įounded in 1983, Silicon Valley Bank provided financing for almost half of US venture-backed technology and health care companies. SVB was one of America’s 20 largest commercial banks and is now under the control of the US Federal Deposit Insurance Corporation after it became unable to pay back customers who withdrew their deposits.
Silicon Valley Bank collapses after failing to raise capital SVB Financial Group bonds are plunging alongside its shares after the company moved to shore up capital after losses on its securities portfolio and a slowdown in funding.
Silicon Valley Bank headquarters in Santa Clara, California, US, on Thursday, March 9, 2023.
