Silicon Valley Bank

European banking stocks sold off sharply in early trade Friday as a global contagion effect took hold after shares in U.S. bank SVB Financial plunged 60%.

The fact SVB's share placing has been accompanied by a fire sale of its bond portfolio raises concerns," Mould said. [Societe Generale](/quotes/GLE-FR/), [HSBC](/quotes/HSBA-GB/), [ING Groep](/quotes/INGA-NL/) and [Commerzbank](/quotes/CBK-DE/) all fell more than 5%. The 40-year-old company was forced into a fire sale of its securities on Thursday, dumping $21 billion worth of holdings at a $1.8 billion loss while raising $500 million from venture firm General Atlantic, according to a [financial update](https://ir.svb.com/events-and-presentations/event-details/2023/Q123-Mid-Quarter-Update/) late Wednesday. The Euro Stoxx Banks index was on pace for its worst day since June, led by a decline of more-than 8% for [Deutsche Bank](/quotes/DBK-FF/). - The Euro Stoxx Banks index was on pace for its worst day since June, led by a decline of more-than 8% for Deutsche Bank.

What happened: The parent of Silicon Valley Bank (SVB) late Wednesday said that it was seeking to raise over $2 billion in capital, after facing big losses on a ...

First Republic Bank, also based in the heart of Northern California tech country, fell more than 15%. - Banks big and small took a beating Thursday, as the S&P's finance sector fell more than 4%. - To do that, SVB sold a $21 billion slug of government bonds. When tech stocks and start-up valuations were soaring — in 2021 for instance — seemingly endless rounds of venture capital rolled in to prop up unprofitable tech startups. Chiaverini, an analyst at Wedbush who covers the company. - To patch that hole in its finances, the bank also moved to raise money by selling new shares as part of a plan to come up with $2 billion in capital.

Shares of SVB Financial Group, known as Silicon Valley Bank, tumbled for a second day Friday and weighed on the whole banking sector again.

Concern among founders and venture capital investors spiked earlier this week after Silicon Valley Bank surprised the market by announcing late Wednesday it needed to raise $2.25 billion in stock. "Falling VC funding activity and elevated cash burn are idiosyncratic pressures for SIVB's clients, driving a decline in total client funds and on-balance-sheet deposits for SIVB," wrote the Morgan Stanley analysts. The bank also previously reported more than $90 billion in held-to-maturity securities, which wouldn't necessarily incur losses unless it was forced to sell them before maturity to cover fleeing deposits. [Signature Bank](/quotes/SBNY/), which is known to cater to the crypto sector, declined 22% following a 12% tumble Thursday. As the Federal Reserve consistently raises interest rates, it is lowering the value of Treasurys. The shares were down another 62% in premarket trading Friday before they were halted for pending news. Peter Thiel's Founders Fund and other large venture capital firms asked its companies to pull their funds from SVB, [First Republic Bank](/quotes/FRC/) fell 15% following a 17% slide Thursday. - The shares were down another 62% in premarket trading Friday before they were halted. However, rapid deposit outflows outpaced the sale process, which made it difficult for any buyer to do a realistic assessment, Faber reported. They did not open for trading with the market at 9:30 a.m. The failure raised fears more banks would incur heavy losses on their bond portfolios.

Already this week, crypto lender Silvergate Capital Corp. said it planned to shut down. On Thursday, the S&P 500 Financials Index slumped 4.1% — its worst day ...

The lender's CEO on Thursday urged its clients to remain calm, assuring them that the bank had “ample liquidity,” while other venture capitalists cautioned ...

banks [losing](https://www.wsj.com/livecoverage/stock-market-news-today-03-09-2023/card/four-biggest-u-s-banks-lose-47-billion-in-market-value-8fmAmiqs4PDb1F60OSFg?mod=article_inline) more than $52 billion from their valuation. [announcement](https://www.prnewswire.com/news-releases/svb-financial-group-announces-proposed-offerings-of-common-stock-and-mandatory-convertible-preferred-stock-301766247.html) that the lender lost $1.8 billion after selling securities worth $21 billion to hedge against a challenging market. SVB Financial’s shares were hit hard on Thursday after it announced it had sold around $21 billion worth of securities from its portfolio at a loss of $1.8 billion. He [reported](https://techcrunch.com/2023/03/09/silicon-valley-back-withdrawal-issues/). [reported](https://www.semafor.com/article/03/09/2023/some-vc-firms-are-urging-founders-to-pull-money-from-troubled-silicon-valley-bank).

Shares in the bank, a go-to funder of tech start-ups, have fallen more than 60 percent in the past day as investors fear for its finances, and those of ...

(Politico) (Insider) [turn over more documents](https://www.bloomberg.com/news/articles/2023-03-09/jpmorgan-ordered-to-hand-over-more-jamie-dimon-records-to-usvi?srnd=premium)from C.E.O. (NYT) (Reuters) (FT) [higher fees](https://www.institutionalinvestor.com/article/b8xrfm5mtrrhxh/The-Backlash-Against-ESG-Faces-Its-Own-Backlash). (Bloomberg) A [similar feud](https://www.newsandsentinel.com/news/business/2023/03/west-virginia-state-treasurer-moore-imb-head-differ-over-anti-esg-bill/) has emerged in West Virginia over an anti-E.S.G. (Investment data from Morningstar, and others, [contradict this analysis](https://www.morningstar.com/articles/1132007/esg-investing-keeps-pace-with-conventional-investing-in-2022).) [prevent violence](https://www.nytimes.com/2022/09/06/business/dealbook/gun-violence-amalgamated-bank-code.html) by giving credit card companies a tool to spot dubious sales. [$52 billion sell-off](https://www.wsj.com/livecoverage/stock-market-news-today-03-09-2023/card/four-biggest-u-s-banks-lose-47-billion-in-market-value-8fmAmiqs4PDb1F60OSFg) on Thursday, its worst drop in three years.

SVB Financial Group's efforts to raise money have failed and the troubled bank was in talks to sell itself, CNBC reported on Friday, as a crisis at the ...

Global borrowing costs have risen at the fastest pace in decades over the last year as the Federal Reserve lifted U.S. The technology sector has been hit hard in the past few months and stress has appeared in other corners of the market as rates rise. [(.SPXBK)](https://www.reuters.com/quote/.SPXBK) dropped 4.2% on Friday after a 6.6% decline on Thursday, while the KBW Regional Banking index [(.KRX)](https://www.reuters.com/quote/.KRX) was down 5.3%. But rising costs of deposits and possible deposit withdrawals are likely to pressure sector earnings," Mark Haefele, Chief Investment Officer at UBS Global Wealth Management, wrote in a note. Rising interest rates have caused the price of such bonds to fall, feeding investor concerns that other banks might also be vulnerable. Commerzbank, one of Germany's largest banks, for example, played down any threat from SVB, saying it did not see "a corresponding risk for us". The brutal rout in the lender's stock which began on Thursday spilled over into other U.S. Treasuries at a loss. Neil Wilson, Chief Market Analyst at Markets.com, said that the SVB episode could be the "straw that breaks the camel's back" for banks after worries about ever higher interest rates and a fragile U.S. Federal Reserve and other central banks to fight inflation by ending the era of cheap money is exposing vulnerabilities in the market. "The volatility we are seeing among some of the banks is a reminder that sharp increases in interest rates will increase areas of fragility," said Ronald Temple, chief market strategist at Lazard. Register for free to Reuters and know the full story

Shares of Silicon Valley Bank Financial fell 60% Thursday. CNBC did not identify the buyer. It reports that Silicon Valley Bank attempted to raise money from ...

VC firms are urging their portfolio companies to move money out of embattled lender Silicon Valley Bank, fueling fears of a run on the tech-focused bank.

We are seeing other funds encouraging companies to withdraw their funds from SVB. Having funds frozen at SVB could be deadly for a money-burning startup, according to founders with accounts at the bank who spoke to CNBC on the condition of anonymity. In a note to founders Thursday, Hussein Kanji, Hoxton's founder partner, said: "We have seen some funds passing on a view that they remain confident in SVB. Even with funding rounds slowing, startups have had to keep burning through cash raised from earlier rounds to cover their overheads. debt securities, which have now fallen in price after the Fed's rate hikes. - Numerous VC funds are advising companies in their portfolios to move their funds out of Silicon Valley Bank to avoid the risk of being caught up in its potential failure.

In this video, I will talk about the recent crash in bank stocks, specifically Silvergate Capital (SI -42.16%) and SVB Financial (SIVB -60.41%), and explain ...

The Motley Fool has positions in and recommends SVB Financial. The Motley Fool has a disclosure policy. You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services.

Tech sector fallout is spilling into the banking industry, as investors gauge the odds of survival for Silicon Valley Bank, a major startup lender.

“The issue here is what is the domino effect of problems outside the banking industry on the banks themselves?” said Mike Mayo, a bank analyst at Wells Fargo Securities. It also sparked concerns among depositors, many of whom suddenly wondered whether their money was safe at Silicon Valley Bank — a lender known for helping to finance the explosion of tech companies in the San Francisco Bay Area. SVB’s tech-focused strategy has helped it ride the industry’s massive growth leading up to and through the pandemic. Jitters around SVB followed the news this week that Silvergate, a much smaller bank largely focused on the cryptocurrency industry, [announced plans to shut down](https://www.cnbc.com/2023/03/09/bitcoin-ether-fall-after-go-to-crypto-bank-silvergate-announces-liquidation.html). Other bank stocks slipped in Thursday trading as well, underscoring investor worries about broader risks to the financial industry. Shares in some other prominent West Coast banks were also down sharply Friday.

Why it matters: SVB is a cornerstone of the tech and life sciences startup economy. It's also America's 16th largest bank, and its failure would be the biggest ...

[collapse of Silicon Valley Bank](https://www.axios.com/2023/03/10/silicon-valley-bank-government-control-fdic). - Some critics of those firms note that the U.S. It's also America's 16th largest bank, and its failure would be the biggest since Washington Mutual. [conceded](https://nypost.com/2023/03/09/silicon-valley-bank-ceo-to-investors-stay-calm-and-dont-panic/)that some clients are "starting to panic." [venture capital backers](https://www.axios.com/2023/03/09/silicon-valley-bank-svb-spooks-venture-capital), panicked. [Silicon Valley Bank](https://www.axios.com/2023/03/09/silicon-valley-bank-launches-new-share-sale) appears to have imploded within 24 hours, leaving Silicon Valley [in a state of shock](https://www.axios.com/2023/03/09/silicon-valley-bank-svb-spooks-venture-capital). [publicly](https://twitter.com/hdubugras/status/1633933319418290176), but most privately. [CNBC reported](https://www.cnbc.com/2023/03/10/silicon-valley-bank-financial-in-talks-to-sell-itself-after-attempts-to-raise-capital-have-failed-sources-say.html)that the share sale had failed and SVB is actively seeking a buyer. [SVB](https://www.axios.com/2023/03/10/behind-silicon-valley-banks-sudden-rush-for-cash) is a cornerstone of the tech and life sciences startup economy. - That said, there is still some contagion fear (even if that doesn't seem to make much sense). [balance sheet bolstering plan](https://ir.svb.com/news-and-research/news/news-details/2023/SVB-Financial-Group-Announces-Proposed-Offerings-of-Common-Stock-and-Mandatory-Convertible-Preferred-Stock/default.aspx), after rising interest rates had sparked losses on its Treasury and mortgage-backed securities portfolios. [Economy & Business](https://www.axios.com/economy-business)

Several top VC firms, including Coatue and Founders Fund, today suggesting pulling money out of SVB.

One tells Axios that his firm's advice to companies is to have six months of cash somewhere else, but beyond that not to contribute to a possible bank run. In a follow-up call, Gilbert said that he finally had reached somone at SVB, which seemed to "unplug things" and most of the wires had now gone through. Zoom out: Some venture capitalists and founders tell Axios that they've struggled to move their money.

SVB Financial Group is reportedly exploring a sale after selling billions of dollars of assets to make its customers whole and sparking a panic on Wall ...

On Thursday, as bank stocks around the world fell in response to the crisis at SVB, contagion fears spread on Wall Street. “Treasury is aware of recent developments. Signature Bank, another crypto-friendly lender, was hit hard by the bank selloff, with shares sinking 30% before being halted for volatility Friday. The stock tumbled 60% Thursday after the bank said it had to sell a portfolio of US Treasuries and $1.75 billion in shares at a loss to cover rapidly declining customer deposits — essentially facing a run on the bank. When interest rates were near zero, banks loaded up on long-dated, low-risk Treasuries. Back then, he said, “banks were taking excessive risks, and people thought everything was fine.

The Federal Deposit Insurance Corporation took control of the bank's assets on Friday. The failure raised concerns that other banks could face problems, ...

In its surprise disclosure on Wednesday, the bank admitted that it had lost nearly $2 billion when it was all but forced sell some of its holdings. The bank’s deposits doubled to $102 billion at the end of 2020 from $49 billion in 2018. To pay those redemption requests, Silicon Valley Bank had to sell off some of its investments at exactly the wrong time. The bank as of Friday morning was working with advisers on a potential sale, a person with knowledge of the negotiations said, and had halted trading in its shares in the wake of a rapid fall. Flush with cash from high-flying start-ups, it bought huge amounts of bonds more than a year ago, just before the Federal Reserve began to raise interest rates. 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. Though Silicon Valley Bank advertised itself as a “partner for the innovation economy,” it was being shaken by decidedly old-fashioned decisions. created a new bank, the National Bank of Santa Clara, to hold the deposits and other assets of the failed one. The regulator said in a news release that the new entity would be operating by Monday and that checks issued by the old bank would continue to clear. Silicon Valley Bank’s spiral accelerated with incredible speed this week, but its troubles have been brewing for more than a year. After a slump on Thursday, shares of JPMorgan, Wells Fargo and Citigroup all nudged higher on Friday. Customers with accounts that surpassed that amount — the maximum covered by F.D.I.C.

FDIC Creates a Deposit Insurance National Bank of Santa Clara to Protect Insured Depositors of Silicon Valley Bank, Santa Clara, California.

At the time of closing, the amount of deposits in excess of the insurance limits was undetermined. The main office and all branches of Silicon Valley Bank will reopen on Monday, March 13, 2023. As the FDIC sells the assets of Silicon Valley Bank, future dividend payments may be made to uninsured depositors.

Silicon Valley Bank, he 18th largest bank in the U.S. by total assets, was closed down by regulators today after it suffered a bank run.

At the time of its closure, Silicon Valley Bank was the 18th largest bank in the U.S. Silicon Valley Bank unexpectedly announced on Wednesday that it was taking extraordinary and immediate steps to shore up its finances. [CNBC](https://www.cnbc.com/2023/03/10/silicon-valley-bank-financial-in-talks-to-sell-itself-after-attempts-to-raise-capital-have-failed-sources-say.html), SVB Financial (Silicon Valley Bank’s parent company), having failed to raise sufficient capital to shore up its operations, then began seeking to sell itself. by total assets, was closed down by regulators today after it suffered a bank run. The FDIC indicated that all insured depositors would have full access to their insured deposits by March 13, while uninsured depositors would receive certificates for the amounts of their uninsured funds. According to

The FDIC said in the announcement that insured depositors will have access to their deposits no later than Monday morning. SVB's branch offices will also ...

$12 billion $13 billion $20 billion $25 billion $19 billion $32 billion $173 billion $212 billion $188 billion $307 billion The FDIC said loan customers of SVB should continue to make their payments as normal. The FDIC said in the announcement that insured depositors will have access to their deposits no later than Monday morning.

SAN FRANCISCO – The California Department of Financial Protection and Innovation (DFPI) announced today that, pursuant to California Financial Code section 592, ...

The DFPI appointed the Federal Deposit Insurance Corporation (FDIC) as receiver of Silicon Valley Bank. The Department of Financial Protection and Innovation protects consumers, regulates financial services, and fosters responsible innovation. Silicon Valley Bank is a state-chartered commercial bank based in Santa Clara and is a member of the Federal Reserve System, with total assets of approximately $209 billion and total deposits of approximately $175.4 billion as of Dec. DFPI protects consumers by establishing and enforcing financial regulations that promote transparency and accountability. [Press Releases 2023](https://dfpi.ca.gov/2023-press-release/) [Press Releases 2022](https://dfpi.ca.gov/2022-press-release/) [Press Releases 2021](https://dfpi.ca.gov/2021-press-release/) [Press Releases 2020](https://dfpi.ca.gov/2020-press-release/) [Press Releases 2019](https://dfpi.ca.gov/2019-press-release/) [Press Releases 2018](https://dfpi.ca.gov/2018-press-releases/) [Press Releases 2017](https://dfpi.ca.gov/2017-press-releases/) [Press Releases 2016](https://dfpi.ca.gov/2016-press-releases/) [Press Releases 2015](https://dfpi.ca.gov/2015-press-releases/) [Press Releases 2014](https://dfpi.ca.gov/2014-press-releases/) [Press Releases 2013](https://dfpi.ca.gov/2013-press-releases/) [Press Releases 2009 - 2013 (Dept of Corporations)](https://dfpi.ca.gov/2009-2013-department-of-corporations-news-releases/) [Press Releases 2001 - 2013 (Dept of Financial Institutions)](https://dfpi.ca.gov/2001-2013-department-of-financial-institutions-news-releases/) [dfpi.ca.gov](https://dfpi.ca.gov/). We empower all Californians to access a fair and equitable financial marketplace through education and preventing potential risks, fraud, and abuse. [taken possession of Silicon Valley Bank](https://dfpi.ca.gov/wp-content/uploads/sites/337/2023/03/DFPI-Orders-Silicon-Valley-Bank-03102023.pdf?emrc=bedc09), citing inadequate liquidity and insolvency. Its deposits are federally insured by the FDIC subject to applicable limits. [Download this press release (PDF)](https://dfpi.ca.gov/wp-content/uploads/sites/337/2023/03/SVB-Possession-PR-03-10-23.pdf?emrc=7db0ff) [www.fdic.gov](http://www.fdic.gov) or call toll-free 1-877-ASK-FDIC. SAN FRANCISCO – The California Department of Financial Protection and Innovation (DFPI) announced today that, pursuant to California Financial Code section 592, it has

It is the second-largest bank failure in history, behind only the failure of Washington Mutual in 2008. The bank failed after depositors — mostly technology ...

The bank had $209 billion in assets and $175.4 billion in deposits as the time of failure, the FDIC said in a statement. Silicon Valley Bank on Thursday announced plans to raise up to $1.75 billion in order to strengthen its capital position amid concerns about higher interest rates and the economy. Venture capital-backed companies were reportedly being advised to pull at least two months’ worth of “burn” cash out of Silicon Valley Bank to cover their expenses. Notably, the FDIC did not wait until the close of business to seize the bank, as is typical in an orderly wind down of a financial institution. But trading in its shares had been halted before the opening bell due to extreme volatility. Major banks have sufficient capital to avoid a similar situation, though the sector has been under pressure all week.

California's banking regulators shut down Silicon Valley Bank and put in into receivership under the Federal Deposit Insurance Corp. (FDIC). That effectively ...

Though the problems appear to be isolated at SVB, the run on the bank sparked concerns about the banking sector as a whole. "We do not believe there is a liquidity crunch facing the banking industry." The troubles at SVB come as Wall Street had already been on edge. "They really developed a niche that was the envy of the banking space," says Jared Shaw, a senior analyst at Wells Fargo. On Thursday, shares of all kinds of lenders, including the big banks, sagged. That led to a major slump in SVB's shares.

Tech companies that banked at SVB are wondering when they're going to be able to pay employees and their bills after Friday's collapse.

The Treasury Department said in a [readout](https://home.treasury.gov/news/press-releases/jy1334) that Yellen "expressed full confidence in banking regulators to take appropriate actions in response and noted that the banking system remains resilient and regulators have effective tools to address this type of event." "It started as the result of a poker game," Williams said. That meant SVB was struggling to maintain the necessary level of deposits. He said that SVB has always been overexposed to tech even though it managed to survive the dot-com crash and financial crisis. Others who took action later in the day are still waiting — in some cases, for millions of dollars — and are uncertain if they'll be able to meet their near-term obligations. Williams said the FDIC has always tried to work swiftly and to make depositors whole, even if when the money is uninsured. "As the FDIC sells the assets of Silicon Valley Bank, future dividend payments may be made to uninsured depositors," the regulator said. Williams is quite familiar with the topic as well as the history of SVB. Clients that turn to SVB for loans also tend to store their deposits with the bank. [fell apart](https://www.cnbc.com/2023/03/10/silicon-valley-bank-is-shut-down-by-regulators-fdic-to-protect-insured-deposits.html) this week and was shut down by regulators in the largest bank failure since the financial crisis. As of December, roughly 95% of SVB's deposits were uninsured, according to filings with the SEC. "The number one question is, 'How do you make payroll in the next couple days,'" said Ryan Gilbert, founder of venture firm Launchpad Capital.

Engineers at Polymath Robotics were working late Wednesday night on multiple projects when co-founder and CEO Stefan Seltz-Axmacher noticed chatter about ...

PRNewswire/ -- Brex is offering an emergency bridge credit line to startup customers to support payroll and other operational spend needs.

Brex empowers the next generation of businesses with integrated corporate cards and spend management software. Brex will review accounts as quickly as possible, and release emergency funds into customers' Brex Business accounts upon approval. Additional information on the structure of Brex accounts can be found

Ashley Tyrner opened an account with Silicon Valley Bank for her company, FarmboxRx, two years ago. She was setting out to raise venture capital and knew ...

notice, taped by the entrance, that said the regulator was in control. A trickle of customers walked up to Silicon Valley Bank’s branch in Menlo Park, Calif., on Friday afternoon and discovered that its doors were locked. Sydecar, a service that facilitates venture capital deals, shared a list of the banks it uses that were not affected. For part of Thursday, Brex received billions of dollars in deposits from several thousand companies, a person with knowledge of the situation said. Silicon Valley Bank was also a bank to more than 2,500 venture capital firms, including Lightspeed, Bain Capital and Insight Partners. Her despair was part of the fallout across the start-up ecosystem from the failure of Silicon Valley Bank. Butler said he had been prepared for a big crunch, given the doom and gloom swirling around the industry. “The first thing you think about is survival,” he said. The implosion rattled a start-up industry already on edge. Entrepreneurs raced to get loans to make payroll because their money was frozen at the bank. “It’s the worst 24 hours of my life.” [financial instability at the bank](https://www.nytimes.com/2023/03/09/business/silicon-valley-bank-investors-worry.html), she rushed to move FarmboxRx’s money into two other bank accounts.

The chief executive officer of failed Silicon Valley Bank, Greg Becker, is no longer on the board of directors at the Federal Reserve Bank of San Francisco.

[created issues](https://www.wsj.com/articles/BL-REB-19230) for the Fed in years past. The Fed has been working on expanding who serves in these roles. Three of those directors are selected by the Fed's Board of Governors in Washington, while the remainder are selected in a local process. Their respective boards watch over the banks directly and provide advice on governance as well as local economic intelligence. In addition to having three directors to represent banks, there are six other directors who present a mix of local businesses and community interests. The spokesperson declined to say how Becker exited the San Francisco Fed board.

US regulators have shut down Silicon Valley Bank (SVB) and taken control of its customer deposits in the largest failure of a US bank since 2008.

"The average Joe should be fine," he added, but he said tech firms would likely find it even harder to raise money. "Silicon Valley Bank would not have lost money if they hadn't run out of cash to give back to their customers," he said. It now employs more than 8,500 people globally, though most of its operations are in the US. Even businesses without direct business were affected, like customers of Rippling, a firm that handles payrolls software and had used SVB. "I'm on my way to the branch to find my money right now. And then this morning, it was there. Shares saw their biggest one-day drop on record on Thursday, plunging more than 60% and fell further in after-hours sales before trading was halted. "It was pending. And then this happens." This is one of those moments," one start-up founder told the BBC. "The issue was that people wanted money and they didn't have it - they had it invested and those investments were down." US regulators have shut down Silicon Valley Bank (SVB) and taken control of its customer deposits in the largest failure of a US bank since 2008.

The Federal Deposit Insurance Corporation seized the assets of Silicon Valley Bank on Friday, marking the largest bank failure since Washington Mutual ...

As the Fed raises its benchmark interest rate, the value of bonds, typically a stable asset, are starting to fall. The bank had $209 billion in assets and $175.4 billion in deposits as the time of failure, the FDIC said in a statement. That has helped drive the sector lower this week. The banking sector is leading all others in declines. Silicon Valley plunged sharply and was extraordinarily volatile before trading was halted. Major financial institutions like Bank of America, Citigroup and JPMorgan were not immune, falling between 4% and 6%.

The bank had $209 billion in assets at the end of 2022. Bank failures can come from various causes: fraud, bad lending or a mis-match of assets and liabilities.

So when it appeared to the corporate depositors that Silicon Valley Bank was in trouble, the smart and easy response was to withdraw money. Still, the publicly-available financials suggest to me that the bank was still solvent when it was closed—solvent but in trouble. Second, understand how quickly assets can be converted to cash to meet the creditors’ demands. Those assets have real value but cannot be converted into cash quickly, meaning that some depositors would not be able to get their money immediately. As more money left the bank, it probably sold off securities. Most banks put the bulk of their assets into loans, but most banks have many small depositors who won’t need their money suddenly. The 10-year treasury bond, for example, closed the year at 3.88% but hit 4.08% in early March. So Silicon Valley Bank put most of its asset into U.S. Unfortunately, the best yields are usually found on long-term bonds rather than short-term bills. A bank takes in deposits from customers, who could be individuals or businesses. Bank failures can come from various causes: fraud, bad lending or a mis-match of assets and liabilities. Most of their deposits came from large companies that were part of the tech sector.

Even established companies, such as Roku and Roblox, have deposits stuck at SVB.

[federal authorities took control](https://www.wsj.com/articles/svb-financial-pulls-capital-raise-explores-alternatives-including-possible-sale-sources-say-11de7522?mod=article_inline) Friday morning. [20% Off sitewide - Michaels Coupon 2023](https://www.wsj.com/coupons/michaels) [TurboTax service code 2023 - $15 off](https://www.wsj.com/coupons/turbotax)

The implosion of Silicon Valley Bank could force hundreds of tech startups to lay off workers or shut down completely. It remains unclear how much, if any, ...

"At this time, the company does not know to what extent the company will be able to recover its cash on deposit at SVB," officials at Roku wrote of what amounts to about 26% of the company's cash. "This can be an existential risk to competition and innovation in the American economy for the next decade." Any amount above that will result in a "receivership certificate." "Venture capital funding had already been in a contraction mode," Tan said. "We woke up this morning hoping the money would be in that JPMorgan bank account, and it was not." Eventually, Silicon Valley Bank would come to do business with nearly half of all U.S. Will they have to take out personal loans to keep the business running? Do they have to furlough workers?" Stefan Kalb was in the middle of a meeting around 1 p.m. While he declined to provide the exact amount, he noted that Shelf Engine has raised more than $60 million from investors. "It's these services that startups couldn't get elsewhere." The following day, it was under water.

Future payments of remaining uninsured deposits will occur as the FDIC liquidates additional assets. Information about the SVB receivership, how to file claims ...

Sidley and Sidley Austin refer to Sidley Austin LLP and affiliated partnerships, as explained at Other affiliates of a bank that is in receivership may be subject to other bankruptcy or insolvency regimes, which may include the Bankruptcy Code. Uninsured deposits rank third in right of payment behind the FDIC in respect of its administrative expenses and the payment of insured deposits, ahead of all other creditors. The FDIC announced on March 10 that insured depositors will have access to their insured amounts by Monday morning, March 13, 2023, and that uninsured depositors will be paid an advanced dividend next week and will receive a receivership certificate for their additional uninsured deposits (which is not a guarantee of full repayment). FDIC insurance covers certain deposit accounts in an amount of up to $250,000 per depositor for the aggregate of all deposits held by the depositor in each account ownership category. Future payments of remaining uninsured deposits will occur as the FDIC liquidates additional assets.

The big picture: This is the largest bank failure since Washington Mutual in 2008. · Details: Federal Deposit Insurance Corp. · By the numbers: · What to watch: ...

- The Fed could become more reluctant to keep pushing interest rates higher. [Silicon Valley's burning bank](https://www.axios.com/2023/03/10/silicon-valley-bank-run-svb-stock) [walked out the door](https://www.axios.com/2023/03/09/silicon-valley-bank-svb-spooks-venture-capital)yesterday, after a $2.25 billion share sale plan sparked a run on the bank. [created a new bank](https://www.fdic.gov/news/press-releases/2023/pr23016.html) into which all of [SVB's deposits](https://www.axios.com/2023/03/10/behind-silicon-valley-banks-sudden-rush-for-cash) were transferred, and said that "all insured depositors will have full access to their insured deposits no later than Monday morning," [Silicon Valley Bank](https://www.axios.com/2023/03/10/silicon-valley-bank-run-svb-stock), the country's 16th largest bank and a top financial institution for technology and life sciences companies. [Economy & Business](https://www.axios.com/economy-business)

Rating's agency Moody's on Friday downgraded the ratings of SVB Financial Group and its bank subsidiary, Silicon Valley Bank.

S&P Global earlier today slashed credit ratings on SVB Financial Group and Silicon Valley Bank to junk territory and said that it expects SVB Financial to enter bankruptcy. Moody's slashed its credit ratings on Silicon Valley Bank's long-term local currency bank deposit to Caa2 from A1 and issuer ratings to C from Baa1. Moody's downgrades credit ratings on Silicon Valley Bank, SVB Financial

The swift and chaotic failure of SVB left CEOs and investors unable to access their money. Should we be worried about contagion?

“The crisis occurs if you have to sell and take losses.” As more of SVB’s clients took their money out, it had to sell bonds at a loss, and it wasn’t enough to keep the bank afloat. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you. So the risk of contagion is low. “We’re a marketplace for hotels to do all their procurement in one place.” The FDIC has taken it over and is sorting through the mess.

Dozens of young Indian startups backed by the likes of YC, Accel, Sequoia India, Lightspeed, SoftBank and Bessemer Venture Partners banked with Silicon Valley ...

Silicon Valley Bank's 48-hour collapse led to the second-largest failure of a financial institution in US history.

“That’s because its depositors were withdrawing their money so fast that the bank was insolvent, and an intraday closure was unavoidable due to a classic bank run.” For the week, The Dow fell by 4.4%, its worst week since June. “The higher rates have also lowered the value of their treasury and other securities which SVB needed to pay depositors,” Moody’s chief economist Mark Zandi said. The Dow fell by 345 points, or 1.1% on Friday. “Unfortunately, we had most of our company’s cash assets at a bank which just collapsed. Everyday consumers, on the whole, are unlikely to be affected. The FDIC is acting as a receiver, which typically means it will liquidate the bank’s assets to pay back its customers, including depositors and creditors. “In light of recent industry and regulatory developments, Silvergate believes that an orderly wind down of Bank operations and a voluntary liquidation of the Bank is the best path forward,” it said in a statement Wednesday. But the collapse is a good reminder to be aware of where your money is held, and not to have it all in one place. “SVB’s condition deteriorated so quickly that it couldn’t last just five more hours,” wrote Better Markets CEO Dennis M. “The first bank failure since 2020 is a wake-up call for people to always make sure their money is at an FDIC-insured bank and within FDIC limits and following the FDIC’s rules,” Matthew Goldberg, a Bankrate analyst said. “The risk of failure and deposit losses here is that the next, least well-capitalized bank faces a run and fails, and the dominoes continue to fall,” Ackman wrote on Twitter.

DealBook unpacks what caused the biggest U.S. bank failure since the 2008 financial crisis — and what might come next.

Here’s an interesting discussion from the Vulture podcast “Into It” about why the Oscars [aren’t rewarding blockbusters](https://www.vulture.com/2023/03/will-the-oscars-reward-blockbuster-movies.html). (The Economist) [“M*A*S*H” episode](https://clear-vivid-with-alan-alda.simplecast.com/episodes/alan-chats-with-the-bots)for Alan Alda and Mike Farrell, stars of the 1970s TV comedy, to read. [rethinking the ceremony](https://www.nytimes.com/2023/03/09/business/media/academy-awards-broadcast.html)to hold on to viewers — and preserve its own future. Gulden didn’t have to travel far; Puma and Adidas are based in the same Bavarian city, Herzogenaurach. [an Italian highway](https://www.instagram.com/p/CRlFry4LQls/), A24 had the same ambitions as predecessors like Miramax: Produce critically lauded hits. The rub is what possible suitors think about spending on a studio whose movies have never been financial home runs, in an age of increasingly tight budgets. There will be a detailed post-mortem of the bank’s failure in the coming weeks and months. The bank’s management — with the help of Goldman Sachs, its adviser — chose to raise new equity from the venture capital firm General Atlantic and also to sell a convertible bond to the public. The Luxembourg-based firm spent billions to acquire stakes in the commercial arm of La Liga, Spain’s leading soccer league; the Indian Premier League cricket competition; and the Six Nations rugby tournament. That left time for investors — and, more important, clients — to start scratching their heads and sow doubt about the firm, leading to an exodus of deposits. [sell $21 billion of bonds at a $1.8 billion loss](https://www.reuters.com/business/finance/what-caused-silicon-valley-banks-failure-2023-03-10/), in large part, it appears, because many of those bonds were yielding an average of only 1.79 percent at a time when interest rates had risen drastically and the bank was starting to look like an underperformer relative to its peers.

Stocks just suffered their worst week of 2023, amid the remarkable failure of Silicon Valley Bank. What happened: The S&P lost 4.6% in the week ending ...

[inflation pressures](https://link.axios.com/join/markets-signup), [tough talk from the Fed](https://www.axios.com/2023/03/07/federal-reserve-powell-inflation) and, now, jitters around the financial sector have vaporized almost all those gains. [the FDIC's seizure of Silicon Valley Bank](https://www.axios.com/2023/03/10/silicon-valley-bank-government-control-fdic)seemed to stun the markets and raise questions about whether serious problems were developing in the financial sector. It was also the worst week since September. [to rein in resurgent inflation](https://www.axios.com/2023/03/07/federal-reserve-powell-inflation). [after Silicon Valley Bank's sudden move to raise cash spooked investors and depositors](https://www.axios.com/2023/03/10/behind-silicon-valley-banks-sudden-rush-for-cash), sending bank shares reeling. [Economy & Business](https://www.axios.com/economy-business)

Following the collapse of SVB, withdrawals from USDC mounted, with the crypto intelligence platform Nansen showing over $1 billion in redemptions from the ...

Coinbase [worked](https://www.coinbase.com/blog/coinbase-and-circle-announce-the-launch-of-usdc-a-digital-dollar) with Circle to create USDC, launching the token in 2018. The firm is a fundamental cog in the crypto ecosystem, with USDC serving as a crucial on-ramp into crypto for investors globally. After the FDIC placed SVB into receivership on Friday, the weekend will prove an uncertain time as the financial world waits to see if the U.S. government is able to find a buyer for the failed bank or will otherwise backstop losses, with insured deposits only backed up to $250,000. Following the collapse of SVB, withdrawals from USDC mounted, with the crypto intelligence platform Nansen [showing](https://www.coindesk.com/markets/2023/03/11/circles-usdc-endured-1b-of-net-redemptions-since-silicon-valley-banks-shutdown/) over $1 billion in redemptions from the stablecoin since SVB’s shutdown. [revealed](https://www.circle.com/hubfs/USDCAttestationReports/2023%20USDC_Circle%20Examination%20Report%20January%202023.pdf) that part of its $9.88 billion in cash reserves was held at SVB, although it did not disclose the total amount. While we await clarity on how the FDIC receivership of SVB will impact its depositors, Circle & USDC continue to operate normally.— Circle (@circle) [@SVB_Financial]is a critical bank in the U.S. [@circle]is currently protecting [#USDC]from a black swan failure in the U.S. [seems to be safe](https://fortune.com/crypto/2023/03/10/silicon-valley-bank-crypto-investors-silvergate/) from SVB contagion for now, with much of the sector moving to [Signature Bank](https://fortune.com/company/signature-bank/) and other partners in the wake of Wednesday’s [voluntary liquidation](https://fortune.com/crypto/2023/03/08/cryptos-favorite-bank-falls-as-silvergate-announces-plans-to-wind-down-operations/) of Silvergate, Circle could prove the exception. [trading](https://twitter.com/tier10k/status/1634398977712947201) at $0.92 against tether on Kraken as of 10:40 pm ET. [announced](https://twitter.com/binance/status/1634361554543030273) it would be temporarily suspending its [auto-conversion policy](https://fortune.com/crypto/2023/02/22/binance-stablecoin-cash-grab-customers-funds/) of USDC to its BUSD stablecoin, citing “market conditions” and describing the action as a “normal risk-management procedural step.”

Traders have been watching this week for signs of contagion in the financial sector from developments surrounding startup-focused Silicon Valley Bank and ...

cryptocurrency firm Circle has $3.3 billion of its $40 billion of USD Coin reserves at the collapsed lender Silicon Valley Bank, the company said in a tweet on Friday. Circle said in another tweet on Friday that it and USDC continue to operate normally while it waits to see how SVB's receivership will affect its depositors, while several crypto companies took to Twitter to deny any exposure to the collapsed SVB. cryptocurrency firm Circle said it has $3.3 billion of its $40 billion of USD Coin reserves at the collapsed lender Silicon Valley Bank.

A regulatory filing shows the shuttered bank as one of three custodians for Pantera's funds.

[ Consensus 2023](https://consensus.coindesk.com/), CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. CoinDesk is an independent operating subsidiary of [Digital Currency Group](https://dcg.co/), which invests in [cryptocurrencies](https://dcg.co/#digital-assets-portfolio) and blockchain [startups](https://dcg.co/portfolio/). [ restructured its upper management ](https://www.coindesk.com/business/2023/02/03/crypto-vc-firm-pantera-loses-cio-joey-krug/)last month after the departure of co-chief investment officer Joey Krug. [Form ADV dated ](https://reports.adviserinfo.sec.gov/reports/ADV/284342/PDF/284342.pdf)Feb. [strict set of editorial policies](/ethics/). 3, Pantera [ listed SVB](https://reports.adviserinfo.sec.gov/reports/ADV/284342/PDF/284342.pdf) as one of three custodians for its private funds alongside BitGo and the custodial service of crypto exchange Coinbase.

LONDON, March 11 (Reuters) - By Elizabeth Howcroft and Rishabh Jaiswal. Stablecoin USD Coin (USDC) lost its dollar peg and slumped to an all-time low on ...

The largest, Tether, has a market cap of $72 billion, according to CoinGecko. USDC is the second-biggest stablecoin with a market cap of $37 billion. Stablecoin USD Coin (USDC) lost its dollar peg and slumped to an all-time low on Saturday after Circle, the U.S. bank failure since the 2008 financial crisis, roiling global markets and stranding billions of dollars belonging to companies and investors. USDC's price usually holds close to $1, making Saturday's drop unprecedented. It recovered slightly to trade around $0.90 by 1120 GMT.

Employees of Silicon Valley Bank were offered 45 days of employment at 1.5 times their salary by the Federal Deposit Insurance Corp, the regulator that took ...

The frenetic two-day run on the bank [blindsided observers and stunned markets](/markets/us/global-markets-banks-sector-analysispix-2023-03-11/), wiping out more than $100 billion in market value for U.S. at the end of last year, with about $209 billion in assets and $175.4 billion in deposits. SVB ranked as the 16th biggest bank in the U.S. [rushed to withdraw](/markets/us/silicon-valley-banks-demise-began-with-downgrade-threat-sources-2023-03-11/) their deposits. SVB had a workforce of 8,528 at the end of last year. Register for free to Reuters and know the full story

Moody's Investors Service delivered alarming news to SVB Financial, parent of Silicon Valley Bank: It was preparing to downgrade the bank's credit.

The FDIC will dispose of its assets. Its lawyers advised the bank that investors would need at least 24 hours to digest new downbeat financial projections and complete the sale, the sources said. SVB's stock plunged on news of the share sale, ending Thursday down 60% at $106.04. News of the share sale spooked clients, primarily technology startups, that rushed to withdraw their deposits, upending the capital raising. It would sell more than $20 billion worth of low-yielding bonds and reinvest the proceeds in assets that deliver higher returns. The failure also sent shockwaves through California's startup economy, with many companies unsure of how much of their deposits they can recover and worrying about how to make payroll.

Stablecoin USD Coin (USDC) lost its dollar peg and slumped to an all-time low on Saturday after Circle, the US firm behind the coin, revealed some of the ...

The largest, Tether, has a market cap of $72 billion, according to CoinGecko. USDC is the second-biggest stablecoin with a market cap of $37 billion. USDC’s price usually holds close to $1, making Saturday’s drop unprecedented. It recovered slightly to trade around $0.90. [tweet](https://twitter.com/circle/status/1634341007306248199) Friday it and USDC “continue to operate normally” while the firm waits for clarity on what will happen to Silicon Valley Bank depositors. [collapsed lender Silicon Valley Bank](http://www.cnn.com/2023/03/11/business/svb-collapse-roundup-takeaways/index.html), the company said in a [tweet](https://twitter.com/circle/status/1634391505988206592) Friday.

The implosion of the Silicon Valley bank led to finger-pointing, as executives and investors jumped on the crisis for their own messaging.

Silicon Valley Bank appears to have had a relatively small footprint in the crypto industry. “There’s no crypto regulator insuring accounts for $250,000,” said Danny Moses, an investor at Moses Ventures who is known for his role in predicting the 2008 crisis in “The Big Short.” The fact that the F.D.I.C. “If this was an unregulated crypto bank, then the money could just disappear,” Mr. It became insolvent after investors and depositors caused a run on its holdings, the order said. The news set off fear in the tech industry, as start-ups rushed to get their money out. In November, FTX, the crypto exchange run by A so-called stablecoin designed to maintain a constant value of $1 suddenly dipped in price, sending shudders through the market. But crypto executives and investors — who have endured a year of near-constant upheaval — seized on the moment to preach and scold. And the finger-pointing went in both directions. [said](https://twitter.com/jaredgrey/status/1634341626121187330). Their vision of an alternate financial system, unmoored from big banks and other gatekeepers, was [better](https://twitter.com/ErikVoorhees/status/1634011983853895681).

Silicon Valley Bank, facing a sudden bank run and capital crisis, collapsed Friday morning and was taken over by federal regulators. It was the largest failure ...

By Friday morning, trading in SVB shares was halted and it had abandoned efforts to quickly raise capital or find a buyer. “The system is as well-capitalized and liquid as it has ever been,” Moody’s chief economist Mark Zandi said. It will pay uninsured depositors an “advance dividend within the next week.” First, there was the Federal Reserve, which began raising interest rates a year ago to tame inflation. At the same time, venture capital began drying up, forcing startups to draw down funds held by SVB. It provided financing for almost half of US venture-backed technology and health care companies.

It not only takes startups' cash, but also provides them with venture debt and other loans, and provides banking and loans to VC firms. A number of publicly- ...

- Brex, Ramp, Arc, and others have cropped up to provide venture-backed startups with corporate credit cards and a growing number of financial services. That's dependent not only venture financing, but on trusting the assessment of VCs backing a certain company. A number of publicly-traded tech companies are also customers, like The venture capital industry is well known for its tight-knit network, and propensity to circulate information (and opinions) at the speed of tweets. [44% of 2022’s ](https://s201.q4cdn.com/589201576/files/doc_financials/2022/q4/Q4_2022_IR_Presentation_vFINAL.pdf)venture-backed tech and health care IPOs, and [55% in 2021](https://s201.q4cdn.com/589201576/files/doc_presentations/2022/01/01/Q4_2021_IR_Presentation_vFINAL.pdf). [Roblox](https://www.sec.gov/ix?doc=/Archives/edgar/data/1315098/000110465923031295/tm239193d1_8k.htm)and [Roku](https://www.sec.gov/ix?doc=/Archives/edgar/data/1428439/000142843923000010/wk-20230310.htm).

The financial institution best known for its relationships with high-flying world technology startups and venture capital, Silicon Valley Bank, ...

Silicon Valley Bank was large but had a unique existence by servicing nearly exclusively the technology world and VC-backed companies. Typically bank regulators look for a stronger bank to take on the assets of a failing bank, but in this case, another bank hasn’t stepped forward. At the moment, all of that money can’t be accessed and likely will have to be released in an orderly process. However the vast majority of Silicon Valley Bank’s deposits were uninsured, a unique characteristic of the bank due to its customers being largely startups and wealthy tech workers. That required selling typically safe bonds at a loss, and those losses added up to the point that Silicon Valley Bank became effectively insolvent. The fancy tech-focused bank was brought down by the oldest issue in banking: a good ol’ run on the bank.

Silicon Valley Bank has joined the cemetery of failed banks due to its self-inflicted wounds. No amount of finger pointing will absolve CEO Greg Becker, ...

According to SVB’s [10-K](https://s201.q4cdn.com/589201576/files/doc_financials/2022/q4/f36fc4d7-9459-41d7-9e3d-2c468971b386.pdf), “As of December 31, 2022, and December 31, 2021, the amount of estimated uninsured deposits in U.S. Thanks to all those politicians and bank lobbyists who fought hard to lower risk management requirements for banks under $250 billion assets, SVB was not required to disclose how much it had in high quality liquid assets to help it cover net cash outflows in a period of stress. Significant higher growth in assets is also a good time to examine whether a bank’s technology is up to the task of taking in significant amounts of data to price assets and to measure their credit, market, and liquidity risks. He had all of 2022 to see up close and personal all the funding and liquidity problems that his company was having. Such a rapid and large rise in deposits should always make risk managers test what would happen to the bank’s liquidity when depositors decided to leave as quickly as they came in. Its high levels of deposits from traditionally riskier companies meant that if any had liquidity problems there was always the risk that they could come rapidly en masse to withdraw their deposits. What more of a signal does a bank need to conduct interest rate sensitivity analysis and stress tests on their bond holdings? They repeatedly told us that they were bankers to technology, start-up companies, and venture capital firms. Anyone who does not take interest rate risk sensitivity analysis and stress tests seriously as part of a Gap Analysis does not belong in banking. From a credit perspective, SVB’s loans and bonds were of a good credit quality; their data showed a low probability of default. Loans alone grew almost 114% from 2019 to 2020 and then almost 30% from 2020 to 2021. Yet, even looking at aggregated data about SVB, a number of signs would have told investors, lenders, and credit analysts that SVB had problems.

The Northern California bank's Friday collapse marked the nation's largest bank failure since the 2007 financial crisis and has raised concerns about ripple ...

The bank’s depositors had included many Silicon Valley startups and health care businesses that are now scrambling to meet payroll demands after the bank’s failure. The briefing comes as California lawmakers also brace for flooding in their state after heavy storms. “The investors and executives of SBV should bear risk and lose.

Etsy is warning sellers that the collapse of Silicon Valley Bank is causing delays in processing payments, according to an email from the company shared ...

That downslide came on the heels of a more than 60% decline Thursday. "At this time, Etsy has not provided a time frame for the funds to be deposited," McKinney said. The FDIC has formed a separate entity where all insured SVB deposits — up to $250,000 per depositor — will be available by Monday morning. Owen McKinney, who runs Kentucky Country Home laser engraving business, said in an email that he relies on the deposits to pay for items like shipping costs and materials. "Please know that our teams are working hard to resolve this issue and send you your funds as quickly as possible." "We know that you count on us to help run your business and we understand how important it is for you to receive your funds when you need them," the email continued.