BLUFOn March 10, California regulators closed Silicon Valley Bank, causing the second-largest bank failure in US history. Federal regulators took over, reconstituting the bank as The Deposit Insurance National Bank of Santa Clara. Federal regulators guaranteed that depositors would get their money back. However, SVB shareholders lost their investment.
Nassim Khadem writing for the ABC notes that:
- California regulators closed Silicon Valley Bank (SVB) due to losses in its US Treasury bond portfolio caused by rising interest rates.
- The failure was the second-largest in US history and was accompanied by the closure of Silvergate Bank, which specialises in cryptocurrency.
References from the Web:
- 14 MAR 2023 Silicon Valley Bank collapse: What happened to SVB? What does it mean for Australia? (smh.com.au)
- 14 MAR 2023 Silicon Valley Bank: Lessons learned from failed 'tech bank' - BBC News
- 15 MAR 2023 The SVB Failure: Why It Happened and What It Means : Democracy Journal