Silicon Valley Bank was shut down by California regulators on Friday and seized all its assets. The Federal Deposit Insurance Corporation was named as the receiver.
“Silicon Valley Bank has been closed by the California Department of Financial Protection and Innovation, and the Federal Deposit Insurance Corporation (FDIC) has been appointed receiver, becoming the first FDIC-backed institution to fail this year,” Market Watch reported.
“The news comes amid a crisis at parent SVB Financial Group SIVB, which lost a record 60% of its value on Thursday, after it disclosed large losses from securities sales and announced a dilutive stock offering along with a profit warning. The FDIC said all insured depositors will have full access to their accounts no later than Monday morning. Uninsured depositors will get a receivership certificate and may be entitled to dividends once the FDIC sells the bank’s assets,” the outlet added.
The bank reportedly holds $173 billion in deposits. The collapse could cause a recession.
The company provided funding to 44% of all venture capital-backed tech and healthcare companies that publicly listed on a stock exchange last year, according to its website.
Silicon Valley Bank holds $173B of deposits.
Fed interest rate is at 4.57%
SVB’s $117B of securities (MBS) yield 1.56-1.66%
This is causing a bank runIf enough VC / tech cos pull their money,
—SVB may be bankrupt
—Many startups may be wiped out
—Crash may cause a recession! pic.twitter.com/wA38Mx1edb— Deedy (@debarghya_das) March 10, 2023
Customers tried to pull millions of dollars out and can’t. Online banking and mobile services showing unavailable for some customers. The Feds shut it down.
Good Morning Everyone! Silicon Valley Bank is getting worse. Customers trying to pull millions of dollars out and can’t. Online banking and mobile services showing unavailable for some customers.
Stock down 60% pre-market.
If the bank fails, it would be the second largest… https://t.co/dCnew8tzAP pic.twitter.com/h7YcocnvZX
— Genevieve Roch-Decter, CFA (@GRDecter) March 10, 2023
The CEO of Silicon Valley Bank $SIVB sold $3.57 million worth of shares within the last two weeks, just before the bank’s collapse.
Hey Elon, you might find this interesting.
The CEO of $SIVB sold $3.57 million over the last two weeks, JUST BEFORE the collapse. https://t.co/m3MBPrYEfh
— unusual_whales (@unusual_whales) March 11, 2023
CEO of gaming hardware company Razer Min-Liang Tan recently proposed that Twitter acquire SVB and convert it into a digital bank. Interestingly, Twitter chief Elon Musk replied to his tweet, saying, “I’m open to the idea.”
I’m open to the idea
— Elon Musk (@elonmusk) March 11, 2023
Elon Musk’s response was celebrated on his Twitter platform.
It would certainly kickstart Twitter as a financial institution. Perhaps?
— Ian Miles Cheong (@stillgray) March 11, 2023
What an opportunity. 2-3 years to get a banking charter otherwise. Just make sure you go through those toxic assets with a fine-tooth comb!!
— Meet Kevin (@realMeetKevin) March 11, 2023
My thoughts exactly.
— Dhammapada.com (@DhammapadaCom) March 11, 2023
That’s a great opportunity to start a banking business, isn’t it?
— Eiji KUMAMARU, 熊丸 英治, Prospect of a winning (@Xu0P5C4rMmMKUdu) March 11, 2023
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