Silicon Valley Bank collapse

Justice Department officials have launched an investigation into the bank amid growing questions about who shares responsibility for the largest bank ...

The actions have raised questions about whether venture capital firms that encouraged depositors to flee fueled the bank run that precipitated the bank's insolvency. Federal prosecutors are starting to ramp up a probe into the doomed Silicon Valley Bank just days after a bank run led to its swift collapse. [reported](https://www.bloomberg.com/news/articles/2023-03-11/thiel-s-founders-fund-withdrew-millions-from-silicon-valley-bank#xj4y7vzkg) that Founders Fund itself yanked millions out of the bank in the lead up to the bank's meltdown. [uncertainty persists](https://www.npr.org/2023/03/13/1163272334/silicon-valley-bank-startups-worrieshttps://www.npr.org/2023/03/13/1163272334/silicon-valley-bank-startups-worries) among companies in a days since regulators announced the rescue deal. [to call for him](https://www.washingtonpost.com/technology/2023/03/12/greg-becker-svb-stock/) to give the money back. [took extraordinary measures](https://www.npr.org/2023/03/12/1162975615/the-u-s-takes-emergency-measures-to-protect-all-deposits-at-silicon-valley-bank) to shore up billions of dollars in deposits to contain contagion frim spreading across the banking sector.

The forced closure of Silicon Valley Bank on Friday (March 10) could have ripple effects across the space industry.

The collapse of SVB, a bank that was born in the heart of Silicon Valley four decades ago, began on Wednesday (March 8), when it announced a $1.75 billion raising of capital. [Rocket Lab](https://www.space.com/rocket-lab.html), which [SpaceNews reported](https://spacenews.com/space-sector-reacts-to-collapse-of-silicon-valley-bank/) (opens in new tab) has an aggregate balance of around $38 million with the California-headquartered SVB. SVB has 17 branches in California and Massachusetts. since the global financial crisis in 2008. "I can only imagine the state of mind for startups that had their equity fundraising or revenue monies in SVB," the entrepreneur told SpaceNews. But, Feher said, "it could heavily affect some startups' cash flow in the near terms as they struggle to get their assets out." [here](https://spacenews.com/space-sector-reacts-to-collapse-of-silicon-valley-bank/) (opens in new tab). SVB had become the bank of choice for many startup tech companies, thanks to its deeper understanding of the circumstances faced by those companies in comparison to other banks. Federal Deposit Insurance Corporation (FDIC) was appointed as the receiver for the bank. It's appalling." Securities and Exchange Commission. [told Reuters](https://www.reuters.com/business/finance/regulators-urged-find-silicon-valley-bank-buyer-industry-frets-about-fallout-2023-03-12/) (opens in new tab).

Bailouts mean customers' deposits are safe, but the bank's demise has sparked concern about future investment in small tech companies.

“While the lending capacity of SVB can be replaced by other institutions, the potential retrenchment in lending broadly could be damaging. The pity is that SVB was a unique case, not a reflection of the climate-tech space, nor of the economy in general. “We had to work under the assumption that our money would be gone, which means we had to find ways to recapitalize Universal Quantum,” he says. “The environment was getting much tougher for venture-capital funding,” he says. But a frantic weekend of lobbying and discussions by the country’s tech leaders meant that, by 13 March, SVB’s operations there had been rescued by HSBC bank — which bought SVB UK for £1 ($1.20), allowing all banking operations to carry on as before. “Your first thought is: ‘This is the end of your company.’”

Depositors with funds in the failed Silicon Valley Bank (SVB) will have access to all of their money beginning Monday, March 13, according to a joint ...

[largest bank in the United States](https://www.bankrate.com/banking/biggest-banks-in-america/) at the time it collapsed. [$209 billion in assets](https://www.fdic.gov/news/press-releases/2023/pr23016.html) and $175 billion in deposits as of Dec. President Joe Biden [sought to reassure Americans](https://www.whitehouse.gov/briefing-room/speeches-remarks/2023/03/13/remarks-by-president-biden-on-maintaining-a-resilient-banking-system-and-protecting-our-historic-economic-recovery/) in televised remarks the same day. This, combined with depositors rushing to withdraw their money, forced the bank to sell its assets at a big loss to handle all of the withdrawals. history, second only to the 2008 failure of Washington Mutual. “As clients withdrew money, the bank needed to sell assets to provide the necessary cash,” says Arthur Weissman, co-founder of Miami-based financial services firm Industry FinTech. Around 2,700 Etsy merchants [were affected temporarily](https://www.reuters.com/markets/etsy-other-e-commerce-companies-feel-squeeze-svb-collapse-2023-03-13/) in days following the crash. [The New York Times reported](https://www.nytimes.com/2023/03/13/business/regional-bank-stocks.html). The New York-based bank’s collapse was fueled in part by a run on deposits spurred by the failure of SVB two days prior. Those who had deposit accounts and loans with the failed bank will automatically become customers of the new bridge bank. When banks such as SVB and Signature fail, the effects go beyond those felt by their depositors. Regulators are making an exception in covering both insured and uninsured funds with SVB, though the FDIC’s official policy is to insure up to $250,000 per depositor, per FDIC-insured bank, per ownership category.

They were the gold standard, it almost seemed weird if you were in tech and didn't have a Silicon Valley Bank account,” Stefan Kalb, CEO of Seattle startup ...

With Silicon Valley Bank gone and venture capitalists pulling in their reins, Lin expects there will be fewer startups getting money to pursue ideas in the same fields of technology. Even though all of Silicon Valley Bank’s depositors are being made whole, its demise is expected to leave a void in the technology sector that may be difficult to fill. The bank often helped fill the financial gaps with one of its specialties — loans known as “venture debt” because it was woven into the funding provided by its venture capitalist customers. “They were woven into the fabric of the startup community that I’m part of, so banking with SVB was a no brainer.” We don’t know if we have benefits.” In an essay that he posted on his LinkedIn page, prominent venture capitalist Michael Moritz compared Silicon Valley Bank to a “cherished local market where people behind the counters know the names of their customers, have a ready smile but still charge the going price when they sell a cut of meat.” Kalb started off Monday by opening an account at the largest in the U.S., JP Morgan Chase, which has about $2.4 trillion in deposits. “We don’t know who’s going to pay us when,” McMillan said. Venture capitalists set up their accounts at Silicon Valley Bank just as the tech industry started its boom and then advised the entrepreneurs that they funded to do the same. Silicon Valley quickly established itself as the “go-to” spot for venture capitalists looking for financial partners more open to unconventional business proposals than its bigger, more established peers who still didn’t have a good grasp of technology. Even so, there are fears it will be more difficult to finance the inherently risky ideas underlying tech startups that became a specialty of Silicon Valley Bank since its founding over a poker game in 1983, just as the advent of the personal computer and faster microprocessors unleashed more innovation. “They were the gold standard, it almost seemed weird if you were in tech and didn’t have a Silicon Valley Bank account,” Stefan Kalb, CEO of Seattle startup Shelf Engine, said during a Monday interview as he started the process of transferring millions of dollars to other banks.

Legal experts said a focus of the investigation could be insider sales by several bank executives in the weeks before the bank's failure.

But the actions taken by federal regulators over the weekend appeared to stem some of that fear, pushing stocks of regional banks higher on Tuesday. The S.E.C. and the Federal Reserve also said all depositors of both banks would be made whole, avoiding concerns the business customers of the banks might not be able to pay their employees. But Gary Gensler, the S.E.C. investigation would look at the insider sales as well and the disclosures by the bank about its financial health. Such plans are set up by corporate executives to avoid the appearance of trading on confidential information.

Class-action lawsuit seeking damages alleges that tech-focused bank failed to disclose risks from interest rate hikes.

Specialised in lending to technology start-ups and the venture capitalists who finance them, it had invested much of its money in US government bonds, whose value fell as they would not have purchased the company’s securities at the artificially inflated prices that they did, or at all,” the lawsuit said. Class-action lawsuits allow plaintiffs to sue on behalf of a larger group of people in a similar situation, in this case SVB’s shareholders.

The Department of Justice and Securities and Exchange Commission will reportedly investigate the sudden failure of Silicon Valley Bank, which collapsed in ...

[blamed](https://www.forbes.com/sites/saradorn/2023/03/13/democrats-blame-svb-collapse-on-trump-era-regulatory-rollbacks-but-gop-opposes-stricter-rules/?sh=e1803f658be4) SVB’s failure—as well as the collapse of [Signature Bank ](https://www.forbes.com/sites/brianbushard/2023/03/13/what-happened-to-signature-bank-the-latest-bank-failure-marks-third-largest-in-history/)over the weekend and [Silvergate Capital](https://www.forbes.com/sites/brianbushard/2023/03/08/crypto-bank-silvergate-will-shut-down-amid-financial-problems/?sh=23f9d53272b3) last week—on Congressional Republicans and former President Donald Trump’s loosening of financial regulations on smaller banks in 2018. Customers of New York-based Signature Bank withdrew their deposits in an abrupt mass exodus Friday, after its shares dropped by nearly 25%. [What To Know About Silicon Valley Bank’s Collapse—The Biggest Bank Failure Since 2008](https://www.forbes.com/sites/conormurray/2023/03/13/what-to-know-about-silicon-valley-banks-collapse-the-biggest-bank-failure-since-2008/?sh=38b6f3e34c27) (Forbes) [SVB Shareholder Files First Lawsuit Against Bank Executives Over Historic Collapse](https://www.forbes.com/sites/nicholasreimann/2023/03/13/svb-shareholder-files-first-lawsuit-against-bank-executives-over-historic-collapse/?sh=7f524c154d56) (Forbes) [Justice Department, SEC Investigating Silicon Valley Bank’s Collapse](https://www.wsj.com/articles/justice-department-sec-investigating-silicon-valley-banks-collapse-c192c2b2?mod=breakingnews) (Wall Street Journal) [FDIC Will Protect All Silicon Valley Bank Deposits After Sudden Collapse, Treasury Says ](https://www.forbes.com/sites/marisadellatto/2023/03/12/fdic-will-protect-all-silicon-valley-bank-deposits-after-sudden-collapse-treasury-says/?sh=42d894c7216c)(Forbes) As depositors swiftly moved their money out of the bank, fears grew that other regional banks could also become vulnerable to the same fate as SVB. The bank was shuttered by state regulators on Sunday. [bank run](https://www.forbes.com/sites/qai/2023/03/12/investors-wiped-out-as-bank-run-causes-collapse-of-silicon-valley-bank/?sh=34107a913e95). In a [New York Times](https://www.nytimes.com/2023/03/13/opinion/elizabeth-warren-silicon-valley-bank.html) op-ed Monday, Sen. Elizabeth Warren (D-Mass.) argued Congress should reimpose those regulations, including risk-management standards for banks that had initially been created by the 2010 Dodd-Frank Act in response to the Great Recession. The failure of the regional banks has also had an effect on big banks, including the country’s 10 biggest banks, which [lost](https://www.forbes.com/sites/dereksaul/2023/03/13/bank-stock-crash-intensifies-losses-top-185-billion-as-analyst-warns-svb-failure-risks-intense-regulator-scrutiny/?sh=550529fa3f0f) more than $185 billion in market value since the day before SVB’s collapse, led by big losses at Charles Schwab and Truist Financial—though some [financial experts say](https://www.forbes.com/sites/jonathanponciano/2023/03/10/biggest-bank-failure-since-great-recession-sparks-overblown-fears-of-contagion-but-big-lingering-risks-remain/?sh=7c12285f29bf) fears of a systemic banking meltdown are overblown. President Joe Biden also blamed Trump for the bank failure, [saying](https://www.whitehouse.gov/briefing-room/speeches-remarks/2023/03/13/remarks-by-president-biden-on-maintaining-a-resilient-banking-system-and-protecting-our-historic-economic-recovery/) in a speech this week: “Unfortunately, the last administration rolled back regulations,” while also claiming Americans can “breathe easier” and that the financial system is “safe,” after federal regulators intervened to back all SVP depositors. [closed](https://www.forbes.com/sites/conormurray/2023/03/13/what-to-know-about-silicon-valley-banks-collapse-the-biggest-bank-failure-since-2008/?sh=38b6f3e34c27) by California’s financial regulator. [announced](https://www.forbes.com/sites/marisadellatto/2023/03/12/fdic-will-protect-all-silicon-valley-bank-deposits-after-sudden-collapse-treasury-says/?sh=42d894c7216c) Sunday it would make its depositors whole, even those with more money deposited than the FDIC’s threshold of $250,000, which it is required to insure.

Probes announced in the UK and US over failure of California lender as financial markets recovered from Monday's turmoil.

In London, the FTSE 100 rallied by more than 1%, regaining almost half of Monday’s losses. Regulators said they would ensure all customers would be able to access their money on Monday morning. [Bank of England](https://www.theguardian.com/business/bankofenglandgovernor), and the economic secretary of the Treasury, askingk them about the collapse of SVB’s UK arm and what it means for regulation of banks since the financial crisis. [roll out emergency measures](https://www.theguardian.com/business/2023/mar/12/silicon-valley-bank-collapse-no-bailout-janet-yellen) to prevent contagion from SVB’s collapse, having transferred ownership of the bank’s assets and liabilities to the Federal Deposit Insurance Corporation (FDIC), a government agency. [group of SVB shareholders sued](https://www.theguardian.com/business/2023/mar/14/silicon-valley-bank-lawsuit-fraud-shareholders) the parent company, SVB Financial Group, and two of its top executives, in what many expect to be the first of several likely lawsuits over the bank’s collapse. Such inquiries are not unusual when companies unexpectedly suffer large losses.

According to AFP, the heavy market losses worldwide on fears of a domino effect about the collapsed banks could heighten recession risks. The Asian equities ...

Hong Kong – Hang Seng Index: DOWN 2.3 per cent at 19,247.96 (close), Shanghai – Composite: DOWN 0.7 per cent at 3,245.31 (close), New York – Dow: DOWN 0.3 per cent at 31,819.14 (close). Shares in French lender Credit Agricole dived 1.2 per cent and rival Societe Generale lost 1.1 per cent. Frankfurt – DAX: UP 0.5 per cent at 15,027.77, Paris – CAC 40: UP 0.1 per cent at 7,015.07, Zurich – SMI: DOWN 0.2 per cent at 10,613.29. EURO STOXX 50: UP 0.2 per cent at 4,104.90, Tokyo – Nikkei 225: DOWN 2.2 per cent at 27,222.04 (close). “There was a sense some calm had been restored to markets after a bruising few sessions. The sudden collapse of Silicon Valley Bank on Friday and Signature Bank two days after has continued to rattle the global banking sector and impacted the equities markets in the negative.

U.S. bank stocks jumped on Tuesday, recovering some ground after the failure of Silicon Valley Bank and Signature Bank triggered heavy selling by investors ...

* "This is part of the process of the knob being turned to tighten financial conditions to make sure that we are on our way to normalising a higher interest rate world," Morgan Stanley co-president Edward Pick said on Tuesday. Department of Justice and the Securities and Exchange Commission, citing people familiar with the matter. * U.S. banking system](/business/finance/us-house-financial-services-chair-seek-documents-hold-hearing-amid-bank-2023-03-14/) and said the Federal Reserve and regulator FDIC had "acted swiftly and boldly" within the law. SVB did not immediately respond to a request for comment. * Democratic U.S. * Chancellor * The * Europe's banking index [urged confidence in the U.S. * Ratings agency Moody's cut its outlook on the U.S. * The Republican chairman of the House Financial Services Committee

Our live coverage has ended. Follow the latest economic and banking news here or read through the updates below.

In an extraordinary action to restore confidence in America’s banking system, the Biden administration on Sunday guaranteed that customers of the failed Silicon Valley Bank will have access to all their money starting Monday. Founders and CEOs then shared tweets about the concerning situation at the bank in private Slack channels, according to The Wall Street Journal. Still, the end result was a modern race to withdraw funds, which House Financial Services Chair Patrick McHenry later described in a statement as " the first Twitter fueled bank run." Yellen Professor of Finance and Management at the Yale School of Management, told CNN. The two major federal agencies are conducting separate probes, which are in their preliminary phases and may not lead to any charges or allegations of wrongdoings, the Journal reported. The staggering withdrawals unfolded at a speed enabled by digital banking and were likely fueled in part by viral panic spreading on social media platforms and, reportedly, in private chat groups. [impacting markets around the world](https://www.cnn.com/business/live-news/silicon-valley-bank-collapse-updates-03-14-23/h_aa0acda7ac2f1b6f161f0a669cfe1d14). SVB was brought down by a bank run, but its exposure to long-term Treasuries that tumbled in value during the Fed's historic rate-hike campaign aggravated its liquidity problem. The Securities and Exchange Commission is also looking into what happened, The credit ratings firm said it expects more banks will be will come under pressure after SVB's failure — particularly those with large hoards of uninsured deposits and long-term Treasury bonds that have crumbled in value. Ahead of the Federal Reserve's policy meeting next week, investors are keeping a close watch for any signs that inflation is cooling. Mayopoulous replaced former CEO Greg Becker on Monday following the bank's collapse that triggered widespread concerns about how the tumult could spread to other regional banks.

Regulators found a solution for SVB bank depositors and potentially averted a widespread regional bank run. · But the long-term crisis for financing innovation ...

The result was the development of the silicon chip. If important elements of SVB aren't brought under the wing of a larger institution with that specialized knowledge of tech and finance intact, the United States will have to support rebuilding something like it, if it hopes to continue producing innovation at a high level. But the median venture firm in the United States had $56 million in assets, according to the National Venture Capital Association, investing the money in startups on behalf of wealthy individuals and funds. Though it advertised its role in building big companies, SVB was also an important part of the finance system for deeper innovations. With a decline in overall venture capital funding, the concurrent rise in interest rates and the uncertainty of the current climate, paths to growth and expansion for small businesses will dim. An unknown, but probably fairly large, percentage of Silicon Valley's account holders are startups and venture funds in tech markets in other countries, where tech startups are seen as integral to prosperity and economic growth. The bank provided opportunities for venture capitalists and entrepreneurs to meet, creating invisible yet vital webs of human connection. In the Midwest, former Rust Belt and Southern United States, where Silicon Valley and its bank were held up as exemplars, there are likely hundreds of companies and venture capital funds with accounts and loans at the bank, and many more at other mid-size banks. SVB was the crown jewel of banks and the venture capital industry, not just in Silicon Valley, but globally. Silicon Valley Bank, founded in 1983, was born in a time when Silicon Valley was a synonym for "tech" and "innovation." system for producing innovation has just received a body blow, and the turmoil that led to the death of Silicon Valley Bank isn't over. [Silicon Valley Bank depositors](https://www.cnbc.com/2023/03/12/regulators-unveil-plan-to-stem-damage-from-svb-collapse.html) and, we hope, calmed the [fears of a wider run](https://www.cnbc.com/2023/03/14/first-republic-shares-jump-as-regional-banks-try-to-rebound-from-mondays-selloff.html) on regional banks.

The second-biggest bank failure in U.S. history took less than 48 hours.

"Virtually all of the depositors were from the same community and a community that was very online," Allen told ABC News. "The bank had a very fundamental problem." "People have been talking for a while about whether the speed of digital banking itself would contribute to bank runs," said Allen, of American University. "If we coordinate more through social media and other information technology, that can cause the crowd to move a lot faster." I'm not sure how much of a difference that has made." However, many depositors in Silicon Valley Bank held accounts that far exceeded $250,000, raising the stakes for those who failed to remove their funds before a potential bank failure. "Because information comes out faster, you get the information in real time, it's widespread and it leads people to take action," Campbell Harvey, a finance professor at Duke University, told ABC News. "Americans can rest assured that our banking system is safe," Biden said. Silicon Valley Bank had loaded up on investments into long-term Treasury bonds and mortgage bonds, which typically deliver small but reliable returns amid low interest rates. Patrick McHenry, R-N.C., the chair of the House Financial Services Committee, said in "Obviously, we have a bank runoff. Surreal."

The Securities and Exchange Commission and the Justice Department are both in the early stages of their investigations into the collapse of Silicon Valley ...

In an extraordinary action to restore confidence in America’s banking system, the Biden administration on Sunday guaranteed that customers of the failed Silicon Valley Bank will have access to all their money starting Monday. Founders and CEOs then shared tweets about the concerning situation at the bank in private Slack channels, according to The Wall Street Journal. Still, the end result was a modern race to withdraw funds, which House Financial Services Chair Patrick McHenry later described in a statement as " the first Twitter fueled bank run." Yellen Professor of Finance and Management at the Yale School of Management, told CNN. The two major federal agencies are conducting separate probes, which are in their preliminary phases and may not lead to any charges or allegations of wrongdoings, the Journal reported. The staggering withdrawals unfolded at a speed enabled by digital banking and were likely fueled in part by viral panic spreading on social media platforms and, reportedly, in private chat groups. [impacting markets around the world](https://www.cnn.com/business/live-news/silicon-valley-bank-collapse-updates-03-14-23/h_aa0acda7ac2f1b6f161f0a669cfe1d14). SVB was brought down by a bank run, but its exposure to long-term Treasuries that tumbled in value during the Fed's historic rate-hike campaign aggravated its liquidity problem. The Securities and Exchange Commission is also looking into what happened, The credit ratings firm said it expects more banks will be will come under pressure after SVB's failure — particularly those with large hoards of uninsured deposits and long-term Treasury bonds that have crumbled in value. Ahead of the Federal Reserve's policy meeting next week, investors are keeping a close watch for any signs that inflation is cooling. Mayopoulous replaced former CEO Greg Becker on Monday following the bank's collapse that triggered widespread concerns about how the tumult could spread to other regional banks.

With the Silicon Valley Bank collapse, is it 2008 all over again? As China reopens to tourism, is COVID finally behind us? Will the AUKUS deal shift the ...

By the way, it's also potentially an intelligence risk because Australian level of security around their intelligence and information and their susceptibility to espionage from Beijing is a lot higher than that of the United Kingdom, than that of the United States. And this is a permanent disease that, in terms of COVID's reality, people are still going to die from this thing, but in terms of treating it like a pandemic, yeah, I think it's pretty clear that that we are over and done with and I'm glad to say it. And it's not just because the US political system is more divided, it's also because people feel like it's fine to go after the "woke" banks. And now that we can all start going to China again, that's a really big deal. I mean, the fact that you haven't been able to go to China for three years now. So I mean, just my level of understanding of what the hell is going on in China is significantly less than I need it to be.

The collapse triggered a crisis for tech startups, which have relied on the Santa Clara-based bank for decades. Silicon Valley investors, executives, and ...

Alarmed by the sight of a Silicon Valley stalwart in trouble, venture capitalists began running to withdraw their funds from the bank. And more than 90% of the bank's deposits were above that $250,000 cap. During the pandemic, the tech sector's boom led to a surge in deposits at the bank, which then invested a large chunk of the cash into long-term U.S. In the United Kingdom, meanwhile, the British Treasury and the Bank of England announced early Monday that they had facilitated the sale of Silicon Valley Bank's UK subsidiary to HSBC, Europe's biggest bank, for just one British pound. banking system continues to perform its vital roles of protecting deposits and providing access to credit to households and businesses in a manner that promotes strong and sustainable economic growth." Silicon Valley Bank was not connected to the rest of the financial system by a complicated network of credit derivatives, in the way that Lehman Brothers and other troubled banks were in 2008. Government officials said all customers of the bank will get their money back, too, regardless of how much they have in their accounts. They noted the reserve has at least $100 billion in it, and took pains to stress that no taxpayer dollars will be used in this special intervention. On Sunday, the Biden administration announced that all of Silicon Valley Bank's customers — whether they were insured or not — will have full access to their deposits. It was a highly unusual move by federal officials to backstop billions of dollars in uninsured money, reflecting widespread fears that the bank's collapse could lead to greater panic. "We woke up this morning hoping the money would be in that JPMorgan bank account, and it was not." Kalb, the CEO and co-founder of Seattle-based food management startup Shelf Engine, had been following news of a bank run at Silicon Valley Bank.

The measures taken by Biden administration as Silicon Valley Bank failed seem, at least so far, to have stemmed any broader run on banks.

Without a deal, the Fed and FDIC boards each vote unanimously to proceed with the plans hammered out over the past two days. The rush is on to assure SVB's depositors that they can make payroll on Monday and get ahead of Asian markets opening on Sunday around 6 p.m. While Yellen was not actually scheduled to attend, Blinken's joke draws hearty laughs - after all, many in the room figured Yellen was scrambling to stem a bank run. Sporting a purple blazer and pearls, Yellen arrives at CBS News in Washington before 8 a.m. Yellen meets again with Powell, Fed Vice Chair for Supervision Michael Barr, and Gruenberg from the FDIC, and they agree to do all three. Two early suitors - PNC Financial Group Inc and Royal Bank of Canada - back away. The measures seem, at least so far, to have stemmed any broader run on banks. President Joe Biden is briefed on the SVB situation by his new chief of staff Jeff Zients and former Fed Vice Chair Lael Brainard, who took over as director of Biden's National Economic Council on Feb. The U.S. The measures taken by Biden administration as Silicon Valley Bank failed seem, at least so far, to have stemmed any broader run on banks. 21, as Yellen testifies for three hours in the contentious congressional hearing. screening of the wildlife thriller "Cocaine Bear."

The 2018 partial rollback of US's Dodd-Frank is under renewed scrutiny following the failure of California-based lender.

“Regulation is not a thermostat where you can just push it up or down – the details matter a lot. Although the details are not reported in their public filings, it appears that SVB did perform shock testing, aka, sensitivity analysis.” “I’m not sure anything will really come out of this from a regulatory perspective,” Chittenden told Al Jazeera. “The debate as to whether increasing the threshold for the financial institutions that get extra regulatory oversight from $50bn to $250bn in 2018 played a role in SVB’s collapse is already well under way. Michael Barr, the Fed governor who oversees supervision, was a big critic of the shift. The legislation raised the asset size threshold for banks considered too big to fail from $50bn to $250bn.

Collapse of Silicon Valley Bank (SVB) marks biggest US bank failure since Washington Mutual during 2008 financial crisis.

[TikTok](https://www.independent.co.uk/topic/tiktok) clearly laying out the Silicon Valley Bank situation. [Silicon Valley Bank's demise disrupts the disruptors in tech](https://www.independent.co.uk/news/silicon-valley-bank-ap-entrepreneurs-jp-morgan-chase-silicon-valley-b2300210.html) [Class action suit filed against Silicon Valley Bank parent](https://www.independent.co.uk/news/silicon-valley-bank-ap-ceo-federal-reserve-biden-b2300570.html) banks to stay away from the cryptocurrency business, a former member of Signature was a traditional commercial bank with a wide range of activities and customers,” an NYDFS spokesperson said. “I think part of what happened was that regulators wanted to send a very strong anti-crypto message,” Mr Frank told CNBC on Monday. [North Carolina](https://www.independent.co.uk/topic/north-carolina) Democrat [Jeff Jackson](https://www.independent.co.uk/topic/jeff-jackson), originally from [Chapel Hill](https://www.independent.co.uk/topic/chapel-hill), was elected to the US [House of Representatives](https://www.independent.co.uk/topic/house-of-representatives) for the state’s 14th District in 2022. A [class-action lawsuit has also been filed](/news/silicon-valley-bank-ap-ceo-federal-reserve-biden-b2300570.html) by investors against the parent company, CEO and CFO. [US Department of Justice](https://www.independent.co.uk/topic/us-department-of-justice) and the [Securities and Exchange Commission](https://www.independent.co.uk/topic/securities-and-exchange-commission) are investigating the collapse of [Silicon Valley Bank](https://www.independent.co.uk/topic/silicon-valley-bank), [The Wall Street Journal reports](https://www.wsj.com/articles/justice-department-sec-investigating-silicon-valley-banks-collapse-c192c2b2), citing people familiar with the matter. It is looking for unspecified damages to be awarded to those who invested in SVB between June 16, 2021 and March 10, 2023. [Mike Pence](https://www.independent.co.uk/topic/mike-pence) has joined the choir of conservative voices trying to pin the [Silicon Valley Bank](https://www.independent.co.uk/topic/silicon-valley-bank) collapse on Democrats while Democrats try to do the same to them. [Silicon Valley Bank](https://www.independent.co.uk/topic/silicon-valley-bank), its [CEO](https://www.independent.co.uk/topic/ceo) and its chief financial officer, saying that company didn’t disclose the risks that future interest rate increases would have on its business.

Silicon Valley Bank was among the few banks that offered much-needed dollar accounts and catered to the specific needs of Latin American tech startups.

"(A bank) told me, 'Normally we don't open accounts for less than $5 million,'" Garrido said. For Latin American startups, SVB was among the few banks that offered much-needed dollar accounts and catered to their specific. He has also been in touch with other institutions like Santander, Bank of America Corp and Citigroup. "We had all of our capital there, in the US.," Garrido said. While companies have been mostly successful in moving their money out of SVB, they are now left without a long-term plan. Silicon Valley Bank was among the few banks that offered much-needed dollar accounts and catered to the specific needs of Latin American tech startups.

CNN examines how the second-largest bank failure in US history could impact other financial institutions and their customers across the US. Watch “Bank Bust: ...

CNN examines how the second-largest bank failure in US history could impact other financial institutions and their customers across the US. Watch “Bank Bust: What’s Next for America’s Money” Wednesday, March 15 at 9 p.m. If you are unable to see the form above,

Silicon Valley Bank was not a household name. For four decades, SVB successfully competed with big name financial institutions only to come crumbling down ...

"This bank would seem perfectly at home in the 1920s or the 1870s: Lots of deposits and a lot of local customers," Metrick said. Federal regulators took control of the bank on Friday. This meant a majority of the bank's deposits were not insured by the government. And with the tech sector struggling recently, more depositors took their money out. SVB said on its website at the time that "44% of U.S. "These guys have been around for a long time, they're a huge institution in Silicon Valley," Metrick said. In the 1990s the company opened offices across the U.S. That year, SVB's wine practice "accounted for 6% of the bank's $14.6 billion gross loan portfolio," the website reported. SVB opened an Israel office in 2008 and a U.K. He teaches in the university's accounting and finance department. You could feel the mania and the panic and the concern and the interest. The bank's collapse has had a unique impact on the area, said San José State University Assistant Professor Matthew Faulkner.

Silicon Valley Bank, which saw a sudden collapse last week, established itself as the “go-to” spot for venture capitalists looking for financial partners ...

A message posted on the bank's website on Tuesday read the bank was "open for business." At the core of the problem was tens of billions of dollars — including money companies needed to meet payrolls — sitting in Silicon Valley Bank accounts that were not protected by federal deposit insurance that only goes up to $250,000. The investigation is in the early stages and may not result in allegations of wrongdoing or charges being filed, the source said. By Sunday evening, federal officials announced that New York-based Signature Bank, a major lender to New York landlords, had also failed and was being seized. As administration officials and regulators worked through the weekend, US President Joe Biden expressed concerns about small businesses and their employees who relied on accounts that were now in jeopardy, a White House official was quoted as saying by the Associated Press. Silicon Valley Bank, which saw a sudden collapse last week, established itself as the “go-to” spot for venture capitalists looking for financial partners more open to unconventional business proposals.

What happened to SVB? SVB became insolvent last week due to a run on the bank by its depositors, many of whom are technology and innovation start-ups or wealthy ...

We also have partner firms assisting foreign investors in [The Philippines](https://www.dezshira.com/office/philippines.html), [Malaysia](https://www.dezshira.com/office/malaysia.html), [Thailand](https://www.dezshira.com/office/thailand.html), [Bangladesh](https://www.dezshira.com/office/bangladesh.html). Among Chinese companies, it sows unease and may make them less willing to work with US banks in the future. On Friday, the DFPI announced it had taken possession of the bank and appointed the Federal Deposit Insurance Corporation (FDIC) as the receiver. SVB was one of the few banks willing to lend to smaller, high-risk technology firms. This included the uninsured amounts of over US$250,000, and also covered the depositors of the collapsed Signature Bank. However, the crisis does expose regulatory shortcomings in the US financial system and raises questions about the impact that social media virality can have on It remains unclear what will happen to this JV, and a notice posted on the bank’s official As many Chinese companies were also clients of the bank, its collapse has caused concern in China of a broader financial crisis and negative impact on China’s economy. All of this happened “despite the bank being in sound financial condition prior to March 9, 2023”. Additionally, at the end of 2022, depositors had already begun to withdraw their cash as financing from VCs and other firms began to dry up and they required more liquidity. The report also stated that the company was seeking to raise around US$2.25 billion in common equity and mandatory convertible preferred shares. Chinese clients of the bank have reported limited exposure, appearing to calm markets.

Companies may need to re-assess their payroll practices and examine their HR tech stack. “Employee credit cards, benefits on credit cards .

“Obviously, founders need to be out in front of this as well. “There has been a big movement in fintech, for both finance and HR, to do all kinds of employee credit cards, benefits on credit cards, things like that,” Spurling said. Communication is “really critical,” Spurling said, recommending that HR take the lead on communications as much as possible. It’s worth noting that [Silvergate](https://www.bankingdive.com/news/crypto-bank-silvergate-shuttering-operations-liquidating/644583/), a crypto bank, took its last shuddering breath Thursday after months of “financial turmoil.” Because the instrument of how you get that credit, where that money is sitting, is going to be looked at much more closely.” “I'd actually tried buying some of their stocks that morning …

The collapse also raised concerns that rising interest rates could expose vulnerabilities in the global economy as a decades-long era of cheap money ends.

It had most of its 22.2 million pounds in cash in SVB accounts and tried to move its cash before SVB's closure but the transaction is pending. 28, says its relationship with SVB is limited to funds on deposit of $21 million, adding it does not pose a risk to the company's ongoing operations. The drug developer says cash balance of its subsidiary Zymergen Inc is held in deposit accounts at SVB, representing about $74 million of the company's cash and cash equivalents as of Dec. The Danish firm, which runs a global review platform, says SVB UK was its principal banking partner, with $36 million held in the bank and $18 million is currently in transfer out of SVB UK but pending confirmation The medical technology firm says it maintained deposit accounts with SVB of about $14 million that are used for its day-to-day operations. The rocket maker says it had deposit accounts with SVB with an aggregate balance of about $38 million, or roughly 7.9% of the company's total cash and cash equivalents and marketable securities as of Dec. The biotech firm says it maintains operating accounts at SVB with about $220 million as of Friday. The digital banking solutions provider says it had deposit accounts with SVB with an aggregate balance of about $3.3 million, along with around $8.3 million in "sweep" accounts used by SVB to purchase external assets. The semiconductor products maker says it has deposit accounts with SVB with an aggregate balance of about $12.3 million, which is around 3.8% of the company's total cash and investments. The rocket maker says its cash is held on deposit with SVB, with the amount representing about 15% of the company's current cash, cash equivalents and marketable securities, as of March 10. The digital media firm said it had about $56 million in cash and cash equivalents at the end of 2022, majority of which was held at SVB. The streaming devices maker says it has about $487 million, or 26% of its cash and cash equivalents, held in deposits with SVB.

The financial regulators in the United States shut down Silicon Valley Bank on Friday, beginning an unsuccessful conclusion of the biggest bank failure ...

Silicon Valley Bank collapse: The spotlight is on US regulators and auditors. I think it’s an embarrassment to the banking regulators, frankly.” I think it’s an embarrassment to the US Federal Reserve. This exact aspect of the Silicon Valley Bank’s functioning made it more prone to collapse. This is because the Silicon Valley Bank relied heavily on corporate deposits and not much on retail and holding a large proportion of assets in loans and securities. “I would submit that not only are they (the US Feds) complicit, they had a hand in designing this mess...

Prosecutors and regulators often open investigations after financial institutions or public companies suffer big, unexpected losses. Shares in SVB Financial ...

SVB was the 16th-largest bank in the US, with some $209bn in assets as of 31 December, according to the Federal Reserve. “Without speaking to any individual entity or person, we will investigate and bring enforcement actions if we find violations of the federal securities laws.” Enforcers typically examine the company’s regulated, periodic disclosures as well as management’s statements to investors or analysts on conference calls and in other forums. SVB Financial still has three other operating segments, including investment banking and venture-capital arms that it is seeking to sell or restructure, according to a securities filing on 13 March. “We owe it to our Massachusetts banking customers and the businesses that might be adversely affected” to investigate, Galvin said. The bank fell victim last week to a run on deposits. Becker exercised options on 12,451 shares on 27 February and sold them the same day, netting about $2.3m. The new rules went into effect on 27 February, the same day the executives sold. “Our loan concentrations are derived from our borrowers engaging in similar activities that could cause those borrowers to be similarly impacted by economic or other conditions,” it said. The investigations are also examining stock sales that SVB Financial’s officers made days before the bank failed, the people said. Its deposits boomed alongside the tech industry, rising 86% in 2021 to $189bn. Shares in SVB Financial Group, which formerly owned the bank, fell 60% last week and have been stopped from trading since 10 March.

A Wall Street Journal report says that US prosecutors have opened an investigation into the collapse of Silicon Valley Bank. The US Justice Department is ...

As part of the probe, officials are looking into stock sales by officers of SVB Financial Group, which owned the bank, WSJ reported. Meanwhile, Silicon Valley Bank's new Chief Executive Tim Mayopoulos has urged top venture capital clients of the bank to move their deposits to its newly created bridge entity. The bank was shuttered on Friday following a bank run.

Battered Japanese bank stocks clawed back some of their heavy losses, as regulators and financial executives hosed down investor concerns about contagion ...

[(.SPLRCBNKS)](https://www.reuters.com/quote/.SPLRCBNKS) rebounded 1.4%, leaving it with a 26% loss over the past five sessions. * Traders currently see a 77% chance of a 25 basis-point increase at the meeting, while expectations for no rate hike have fallen to 23%. [urged confidence in the U.S. [(C.N)](https://www.reuters.com/companies/C.N) regained almost 6% and Wells Fargo [(WFC.N)](https://www.reuters.com/companies/WFC.N) added 4.6%. inflation data that was in line with expectations. First Republic Bank [(FRC.N)](https://www.reuters.com/companies/FRC.N) surged 27%, while KeyCorp [(KEY.N)](https://www.reuters.com/companies/KEY.N) jumped 7%. Markets and financial authorities remained on edge, however, with U.S. [(APO.N)](https://www.reuters.com/companies/APO.N), Blackstone Inc [(BX.N)](https://www.reuters.com/companies/BX.N) and KKR & Co Inc [(KKR.N)](https://www.reuters.com/companies/KKR.N) have expressed interest in a book of loans held by SVB, [Bloomberg News reported](/business/finance/apollo-blackstone-eye-svb-assets-bloomberg-news-2023-03-14/), citing people familiar with the matter. * U.S. [(SBNY.O)](https://www.reuters.com/companies/SBNY.O) association with crypto clients before regulators suddenly seized the lender last weekend, [Bloomberg](/markets/us/signature-bank-faced-criminal-probe-ahead-its-collapse-bloomberg-news-2023-03-15/) also reported. [(SCHW.N)](https://www.reuters.com/companies/SCHW.N) has ample liquidity, [the chief executive](/business/finance/charles-schwab-ceo-says-firm-has-liquidity-not-seeking-capital-or-deals-2023-03-14/) of the bank and brokerage said, moving to allay concerns about a "doomsday scenario" that has weighed broadly on bank stocks. [(GS.N)](https://www.reuters.com/companies/GS.N) was [the acquirer of a bond portfolio](/business/finance/goldman-sachs-bought-svbs-bond-portfolio-lender-says-2023-03-14/) on which it booked a $1.8 billion loss, a transaction that set in motion the failure of SVB.

US politicians wasted no time turning the collapse of Silicon Valley Bank into a blame game. Euronews has fact-checked each side's accusations.

but don’t worry guys it’s only a matter of time till Biden/media blames him for that too". "I think, unfortunately, banks have to be heavily regulated. Ultimately, we'll never know if SVB could have avoided a collapse but experts do believe the deregulation paved the way to its demise. Otherwise, we end up with one crisis after another," he told Euronews. But these recent bank failures are the direct result of weaker rules," I wish I'd been wrong.

With Silicon Valley Bank collapsing and the banking sector shaken, how bad is it for investors? In our view, not as bad as you might think.

The problem is, rising rates have hit the value of many of those securities – mainly high quality fixed income – and the bank had to sell them at a loss. One point that has impacted the wider banking sector is that SVB is not unique in recording losses on such securities. What we’ve seen over the past few days adds to ongoing uncertainty around inflation and interest rates, which in turn has sent bond prices higher (yields have fallen). A package of measures has already been announced by the US Federal Reserve (Fed), Federal Deposit Insurance Corporation and US Treasury which includes all SVB depositors getting their money back. But the US authorities are fortunately reacting swiftly as they seek to counter the deposit loss dynamic in regional banks. Before SVB’s collapse, markets had readjusted their expectations around interest rate hikes, predicting that the Fed could raise them more aggressively than initially expected on the back of potentially sticky inflation.

JP Morgan Chase and Citigroup have seen increased demand after Silicon Valley Bank collapsed as investors like Mark Cuban look for new accounts.

A spokesperson told [Reuters](https://www.reuters.com/business/finance/goldman-sachs-bought-svbs-bond-portfolio-lender-says-2023-03-14/) the transaction had been carried out “at negotiated prices” and netted SVB $21.45 billion in proceeds. [Reuters](https://www.reuters.com/business/finance/what-caused-silicon-valley-banks-failure-2023-03-10/) SVB was forced to recognize a $1.8 billion loss on a $21 billion bond portfolio consisting largely of U.S. [Financial Times](https://www.ft.com/content/2b580939-a4b6-48d2-8eb6-629b4cb1e06c), JPMorgan is supporting its raft of new customers by shortening the waiting time for opening an account. Indeed, the business’s [latest annual report for 2022](https://d1io3yog0oux5.cloudfront.net/_39500c7a18cc33367cb865ff51587d5d/bankofamerica/db/867/9840/annual_report/BAC_AR22_final_030523+%281%29.pdf) reveals the company brought in $27.5 billion after tax and holds $3.05 trillion in assets. According to reports from the The portfolio was yielding well below the current 10-year Treasury yield of around 3.9%, bringing in just 1.79%. [Goldman Sachs](https://fortune.com/company/goldman-sachs-group/) was the buyer of the troublesome portfolio. Meanwhile, the New York Department of Financial Services took possession of But as the saying goes, from chaos comes opportunity. [idiot management](https://fortune.com/2023/03/14/kevin-oleary-blasts-silicon-valley-bank-svb-idiot-management-negligent-directors/)” to a run on the bank, to losses from a bond portfolio sold to a mystery buyer on March 8. [by the Federal Reserve](https://www.federalreserve.gov/supervisionreg/large-institution-supervision.htm)). [Silicon Valley Bank](https://fortune.com/company/svb-financial-group/), they’ve turned to a Wall Street stalwart: [Bank of America](https://fortune.com/company/bank-of-america-corp/).

While its leader extolled innovation and the future of tech, the bank paid less attention to risk management and was caught flat-footed by economic change.

The bank had plenty of liquidity, he said, but he ended the call with one caveat: If people began telling one another that SVB was in trouble, it would pose a challenge, according to people briefed on the call. Clients of the bank rushed to pull deposits. 27, the bank reached out to Goldman Sachs, frantic that there could be a run on the bank if it didn’t shore up its finances, a person with knowledge of the deal said. Visitors to the office on Sand Hill Road in Menlo Park, the heart of the Silicon Valley ecosystem, often remarked on the display of wines from the vineyards the bank had financed. Silicon Valley woke up to a blizzard of text messages, phone calls and Twitter posts about the bank’s mounting woes. Becker was named chief executive, the bank had expanded to dozens of cities in America and around the world. But Silicon Valley Bank put 75 percent of its debt as held to maturity, according to a research report by Janney Montgomery Scott. “He wanted to be the heart and soul of what we ended up calling the innovation economy.” Former representatives of Silicon Valley Bank directed queries to the F.D.I.C., which declined to comment. When the bank was caught flat-footed in a rapidly changing economic environment, it waited till the last minute to try to avert its fate. “It was complete and utter bad risk management on the part of SVB.” Becker projected confidence at the conference, the bank announced a $1.8 billion loss and a hastily put together plan to raise $2.25 billion in fresh capital.

After the sudden collapse of Silicon Valley Bank, California Democratic Rep. Maxine Waters started furiously working the phones to find out what was going ...

The review will be conducted by Michael Barr, the Fed vice chair who heads bank oversight, and be released May 1. "The panic within Massachusetts industry and nonprofit sectors became acute within a matter of hours," Auchincloss said. By Sunday evening, federal officials announced that New York-based Signature Bank, a major lender to New York landlords, had also failed and was being seized. Silicon Valley Bank had eight branches and offices in his home state, and word of its failure was traveling fast on social media. It was the second-biggest bank failure in U.S. At a House Ways and Means committee hearing on Friday morning, Treasury Secretary Janet Yellen said her agency was "monitoring very carefully" developments related to the bank. Waters was right to be skeptical about a sale being closed on the fly. So began a frenetic weekend of nonstop briefings with regulators, lawmakers, administration officials and President Joe Biden himself about how to handle the demise of the nation's 16th-biggest bank and a go-to financial institution for tech entrepreneurs. Then he celebrated an unexpectedly strong February jobs report, met with the leader of the European Union and jetted off to Wilmington, Delaware, to mark his grandson's 17th birthday. The Fed was creating a new emergency program that allowed it to lend directly to banks so they could cover withdrawals without having to sell off assets to raise cash. His weekend would soon be consumed with phone and video calls focused on preventing a nationwide banking crisis. After the sudden collapse of Silicon Valley Bank, California Democratic Rep.

On Friday, SVB was taken over by regulators after massive withdrawals a day earlier effectively created a bank run.

When asked if he would rule out some kind of government assistance in the future, Lehmann answered: "That's not the topic." So that's not the topic whatsoever." and other parts of the world, Lehmann said. HSBC then on Monday agreed to buy the British arm of the troubled U.S. Concerns of contagion and increased regulation and just some general profit-taking caused European banks to post their worst day in more than a year on Monday. 9](https://www.cnbc.com/2023/02/09/credit-suisse-posts-massive-annual-loss-as-radical-restructure-gets-underway.html), which recorded a full-year net loss of 7.3 billion Swiss francs ($8 billion).

US President Joe Biden bin assure im kontri pipo say dia moni safe afta Silicon Valley Bank and Signature Bank collapse.

Who be di pesin wey go dey at risk? But di reality be say most Americans na bank customers. Na di biggest failure of a US bank since di financial crisis wey happun for 2008. E assure say di American pipo no go pay di price. But dem partly blame rising interest rates for dis crisis. Make I repeat am: Taxpayer no go bear di losses," Oga Biden tok. "Taxpayers no go bear di losses. Joe Biden assurance on Monday no be only for customers of di two failed banks. Na US regulators shut down Silicon Valley Bank wey specialise in lending moni to technology companies. Many of dose accounts get amounts wey pass $250,000 level. Smaller US lenders also dey affected, although dem rally on Tuesday. So how bad e be and wetin e mean for you?

Signs of stability in banking stocks, that have tanked in the past week, following the collapse of Silicon Valley Bank, soon paved way for renewed selling ...

Federal Reserve) in terms of a tightening cycle and has a lot to do," said Jorge Garayo, senior rates and inflation strategist at Societe Generale. So we will be very surprised to not see 50 basis points delivered by the ECB." currency against six rivals, was up slightly at 104.01, with the euro down 0.5% at $1.0680. Still very much driven by the perceived health of the banking sector, but this time in Europe," said Antoine Bouvet, senior rates strategist at ING. There had been worries that stronger-than-expected data might lead the Fed to go for jumbo-sized hikes to battle inflation. bank stocks regained some ground on Tuesday aided by news that private equity and buyout giants were looking to scoop up some of SVB's assets. Credit Suisse Group AG shares plunged and the cost of insuring its bonds against default were near a distressed level after the bank’s biggest shareholder ruled out any additional support. That left investors hopeful that efforts to shore up confidence would avert a wider financial crisis. Data on Tuesday showed U.S. One-year credit default swaps were indicated at 835.9 basis points on Tuesday’s close of business. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.9%, having slid 1.7% on Tuesday. European shares were last down almost 2%,

SVB has been a first-mover in serving the climate tech community. Now, there's a hole to fill.

[Mark Casady](https://www.linkedin.com/in/mark-casady-5a662b8/), a founder of the venture capital firm [Vestigo Ventures](https://www.vestigoventures.com/), agrees. [Chauncey Hamilton](https://www.linkedin.com/in/chaunceykerr/), a partner at the [venture capital firm XYZ](https://www.xyz.vc/), told CNBC. "Climate solutions are too powerful a force to be stopped by the failure of a bank," Casady told CNBC. But it will take some time, and delays can be costly in the fight against climate change," Bhatraju told CNBC. "I believe we'll see many more institutions build dedicated climate practices and funds to support startups emerging in this space," Braun told CNBC. When Clerico moved to Silicon Valley with Rich Aberman to grow their fintech company, [WePay](https://go.wepay.com/), they had a Bank of America small business account, but the account didn't have the services the startup needed. "Over time our deposit balances grew to hundreds of millions, we borrowed millions from them in venture debt and we processed billions through their accounts." But as the sector has matured, participants believe other financiers will be more willing to lend to those companies. Venture debt can add between three to six months to the runway companies already have, Rae said. We also do venture debt.' So many are going to emerge," Rae told CNBC in a phone conversation on Tuesday. That was especially true for the cohort of startups being built and scaled to address climate change. "Fundamentally, the companies that are coming out of climate right now have real strength.

Biden administration quickly put emergency measures in place as SVB failed. Here's how it all unfolded.

Yellen arrives at CBS News in Washington before 8am (12:00 GMT) to tape a nearly 13-minute-long segment on the SVB situation. Two early suitors – PNC Financial Group and the Royal Bank of Canada – back away. Big US banks such as JPMorgan Chase, Citigroup and Bank of America slide between 3.5 and 5.5 percent. Europe’s bank index sees more than 120 billion euros ($127bn) evaporate in stock value since March 8. Yellen meets again with Powell, Fed Vice Chairman for Supervision Michael Barr and Gruenberg, and they agree to do all three. Some tech investors start offering cash to prop up their companies. The Federal Reserve, Treasury and FDIC issue a joint statement outlining plans to protect depositors at Silicon Valley Bank and Signature. Yellen’s staff plans a meeting with the Office of the Comptroller of the Currency, the Federal Reserve and the FDIC for Friday. At 2:30pm (18:30 GMT), the US Treasury issues a statement about confidence in regulators and the overall resilience of the US banking system. US Treasury staff hold virtual morning meetings and decide to: 1) look for a buyer, 2) provide a systemic risk exemption to protect depositors, 3) revamp the terms of a Fed facility to permit more borrowing. [Silicon Valley Bank execs, parent company sued after collapse](/economy/2023/3/14/silicon-valley-bank-execs-parent-company-sued-after-collapse?traffic_source=KeepReading) [Why Silicon Valley Bank’s collapse put the spotlight on Trump](/economy/2023/3/15/why-silicon-valley-banks-collapse-has-put-the-spotlight-on-trump?traffic_source=KeepReading) [failure of Silicon Valley Bank](/economy/2023/3/14/why-did-silicon-valley-bank-fail-and-is-a-financial-crisis-next) (SVB), the largest bank collapse since the 2008 financial crisis.

The Silicon Valley Bank collapse triggered panic in markets and the banking sector across the world. Moody's has now downgraded its outlook for the sector ...

Ratings giant Moody's has cut its outlook for the banking sector to "negative" from stable and warned of "a rapid deterioration in the operating environment". The recent banking failures in the United States left crypto firms and tech startups stranded and hunting for new banking partners. The Silicon Valley Bank collapse triggered panic in markets and the banking sector across the world. Tim Mayopoulos, the newly appointed Chief Executive Officer of SVB, declared that the Silicon Valley Bank is back open for business, opening new accounts and making new loans. The Securities and Exchange Commission has also launched a parallel investigation, the publication said. While the US banking system was seizing up in response to bank runs threatening regional banks, Bitcoin, Ethereum, and other crypto networks didn’t skip a beat. Moody's has warned that the US banking system has a lot more pain in store following the collapse of Silicon Valley Bank. A review of the $209 billion bank's failure is being conducted by Fed Vice Chair for Supervision Michael Barr. However, it added that the collapse does provide a valuable lesson for the nation's banking sector. This disclosure marked the beginning of SVB Financial Group's collapse. The lender's demise follows the rejection of the possibility of additional funding by one of its largest sponsors, Saudi National Bank. As per Financial Times, JPMorgan is also assisting its influx of new clients by reducing the time required to create an account.