Previously unknown to the majority of the nation, Silicon Valley Bank has become a household name after experiencing the greatest bank collapse since the 2008 financial crisis.
At the close of 2022, the bank had roughly $209 billion in total assets and approximately $175.4 billion in total deposits. High interest rates, a questionable work culture, and a lack of risk management all came together to help cause the bank's collapse, sending the financial world into a period of panic and uncertainty.Here is a timeline of the fiasco and its aftermath:While problems had been accumulating with SVB for months, the first overtly public sign of trouble came on March 8.
Treasury Secretary Janet Yellen summoned a meeting with leaders of the Federal Reserve, the FDIC, and the Office of the Comptroller of the Currency to discuss the crisis. Yellen ruled out a federal bailout on March 12, and the Fed, Treasury Department, and FDIC announced in a joint statement that emergency measures would be utilized to cover the deposits of those uninsured by the FDIC. Parallel measures were taken to ensure the same with Signature Bank.March 13 opened with an address from President Joe Biden. He assured the nation that the banking system was safe.
Monday also saw an intensified blame game. Many leading Republicans blamed"woke" policies for leading to the bank's collapse, and many leading Democrats blamed bipartisan banking reforms instituted during the Trump administration that rolled back the Dodd-Frank Act.
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