Various sides of the media presented different conclusions on what caused SVB's failure. When that happens, misinformation can spread.
Before exploring speculation on factors that potentially contributed to the collapse, here is a run down on what is known about the collapse of Silicon Valley Bank.
Silicon Valley Bank catered primarily to technology startups, which are capital-intensive businesses. SVB also invested heavily in government bonds, which have decreased in value recently due to the Federal Reserve’s interest rate hikes. Last week, SVB announced plans to sell additional stock to make up for losses inflicted by the bond value decrease. This sparked a"bank run," as customers worried about their money invested in the bank rushed to withdraw it. On Thursday alone, customers tried to withdraw $42 billion from SVB. On Friday, the FDIC stepped in and took control of the bank.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Ex-Ripple Advisor Appointed by Fed to Watch Over Failed Silicon Valley Bank (SVB)Ex-Ripple official to head Silicon Valley Bank's supervision by Federal Reserve ripple xrp ripplesec xrpsec xrpthestandard siliconvalleybank svb fed bankcrash $xrp $svb
Read more »
SVB Financial mulls strategic options, hires restructuring veteranDefunct startup-focused lender SVB Financial Group said on Monday that it was planning to explore strategic alternatives for its businesses including the holding company, SVB Capital and SVB Securities.
Read more »
How fallout from the SVB collapse could complicate life for some of Canada's big banksFallout from Silicon Valley Bank\u0027s demise could complicate life for Canadian banks with operations in the U.S. Read more.
Read more »
SVB Financial to get restructuring chief from Washington Mutual failureSilicon Valley Bank parent company SVB Financial Group said late Monday the board’s restructuring committee named William Kosturos as chief restructuring...
Read more »
House Republicans meeting Monday evening to plot response to Biden’s handling of SVB collapseThe briefing will be led by House Financial Services Chair Patrick McHenry and members of his committee, multiple sources confirmed to Fox News Digital
Read more »
Euro zone bond yields plunge as SVB collapse scares investorsEuro zone government bond yields tumbled on Monday as the collapse of Silicon Valley Bank (SVB) sent investors rushing into safe-haven assets and caused traders to bet on a smaller rate hike from the European Central Bank (ECB) on Thursday.
Read more »