Silicon Valley exhales after US intervenes in SVB collapse

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Silicon Valley exhales after US intervenes in SVB collapse
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A wave of relief swept over Silicon Valley Sunday following a tense weekend of board meetings, emergency funding plans and pleas for help after regulators stepped in to backstop the region’s embattled namesake bank.

The bank's sudden shutdown sent a chill through Silicon Valley amid an otherwise gloomy period marked by tech layoffs and a pullback in spending as consumers tightened their wallets. Company executives, many of whom stashed all of their funds in Silicon Valley Bank, took to Twitter and other social media networks to beg for relief.

Birla predicts that in the next few days, startups will rush en masse to open accounts at large banks. And for companies that hold considerable cash positions, he thinks that there will be a surge of interest in hiring treasurers who will work to minimize the amount of cash companies are holding at any moment.

Doktor Gurson, CEO of Rad AI, said the news represented a “collective sigh of relief” after days worrying about how to make payroll for his startup with some 65 employees. “I lost a couple years of my life over the weekend to be honest. It’s been a bit of a roller coaster.”

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