After Silicon Valley Bank Failed, Fears Of A Financial Disaster Arose
The largest financial institution failure since the financial crisis more than a decade ago occurred on Friday as Silicon Valley Bank (SVB) had its assets seized by US regulators. SVB was the 16th largest bank in the country, catering to depositors such as technology workers and venture capital-backed companies. This week, many of its customers withdrew their money due to anxiety over the banks situation, resulting in the banks inability to manage the large withdrawals. Despite attempts to raise new funds, the bank ultimately failed. The Federal Deposit Insurance Corporation (FDIC) took control of the bank and its management, as per their responsibility to guarantee deposits. Although it may not be well-known to the public, SVB specialized in financing start-ups and was one of the largest banks in the US, with $209 billion in assets and about $175.4 billion in deposits as of the end of 2022.Tech Employees Are Becoming More Anxious Silicon Valley Banks collapse marks the second-largest retail bank failure in the US since 2008s Washington Mutual collapse. On Friday, US Treasury Secretary Janet Yellen convened financial regulators to discuss the situation, assuring them that she trusted their ability to take appropriate action and emphasizing the banking sectors resilience.