Article 69NXG Silicon Valley Bank shut down by US banking regulators

Silicon Valley Bank shut down by US banking regulators

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Financial Times
from Ars Technica - All content on (#69NXG)
svb-sign-800x532.jpg

Enlarge / Signage outside Silicon Valley Bank headquarters in Santa Clara, California, US, on Thursday, March 9, 2023. SVB Financial Group bonds are plunging alongside its shares after the company moved to shore up capital after losses on its securities portfolio and a slowdown in funding. Photographer: David Paul Morris/Bloomberg via Getty Images (credit: Bloomberg via Getty Images)

Silicon Valley Bank was shuttered by US regulators on Friday after a rush of deposit outflows and a failed effort to raise new capital called into question the future of the tech-focused lender.

With about $209 billion in assets, SVB has become the second-largest bank failure in US history after the 2008 collapse of Washington Mutual, and marks a swift fall from grace for a lender that was valued at more than $44 billion less than 18 months ago.

The Federal Deposit Insurance Corporation, the US regulator that guarantees bank deposits of up to $250,000, said it was closing SVB and that insured depositors would have access to their funds by Monday.

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