Silicon Valley Bank~The Beginning of the End?
16th largest Bank in the country.
Silicon Valley Bank, the nation’s 16th-largest bank, failed after depositors hurried to withdraw money this week amid anxiety over the bank’s health. It was the second biggest bank failure in U.S. history after the collapse of Washington Mutual in 2008.
The bank served mostly technology workers and venture capital-backed companies, including some of the industry's best-known brands.
“This is an extinction-level event for startups,” said Garry Tan, CEO of Y Combinator, a startup incubator that launched Airbnb, DoorDash and Dropbox and has referred hundreds of entrepreneurs to the bank. “I literally have been hearing from hundreds of our founders asking for help on how they can get through this. They are asking, ‘Do I have to furlough my workers?’”
LOOK AT THIS NEXT PART OF THIS NEWS ARTICLE: There appeared to be little chance of the chaos spreading in the broader banking sector, as it did in the months leading up to the Great Recession. The biggest banks — those most likely to cause an economic meltdown — have healthy balance sheets and plenty of capital.
What do you think? Is there going to be a run on Banks? Is the ripple effect from this collapse going to create a financial free fall that cannot be saved by the Fed flooding the system with "printed" money?
At the time of its failure, Silicon Valley Bank, which is based in Santa Clara, California, had $209 billion in total assets, the FDIC said. It was unclear how many of its deposits were above the $250,000 insurance limit, but previous regulatory reports showed that lots of accounts exceeded that amount.
SVB’s website note that it “bank nearly half of all US venture-backed startups, and 44% of the US venture-backed technology and healthcare companies that went public in 2022 are SVB clients.” This was one of the remaining sectors of the US economy that led the world in innovation and massive commerce. This will not be brushed under the rug and bailed out. There is going to be a major event in the next couple of weeks. One that will be remembered for years to come. How sound are the assets in your bank? Soft Landing?
This was one of the remaining sectors of the US economy that led the world in innovation and massive commerce. This will not be brushed under the rug and bailed out. There is going to be a major event in the next couple of weeks. One that will be remembered for years to come. How sound are the assets in your bank? Soft Landing?
https://image.cnbcfm.com/api/v1/ima...1416-SVB_ILLO.jpeg?v=1678480607&w=1920&h=1080
