California regulators on Friday abruptly shuttered Silicon Valley Bank, closing a 40-year-old financial institution that catered to the tech industry and that was the 16th largest U.S. bank before its sudden collapse. The company’s stock tumbled 60% on Thursday and had plunged another 70% on Friday before trading of its shares was halted.
SVB has been growing around Silicon Valley startups by receiving deposits from startups and providing loans to startups. As of the end of last year, SVB is the 16th largest commercial bank with assets worth $209 billion. recorded as the second largest bank closure since the 2008 financial crisis
This crisis, which seems to have occurred as a result of a decline in the asset value of banks that invested in bonds during the low interest rate period in the aftermath of the steep rate hike by the US Federal Reserve System, followed by a series of deposit withdrawals. will be transferred to, pay attention to the future
