On 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.
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