homenewedit

Silicon Valley Bank Collapse

333 views
updated 15 Mar 2023

Silicon Valley Bank Collapse

Silicon Valley Bank or SVB is the 14th Largest Bank in America that experienced a bank run on March 9, 2023. Silicon Valley Bank is focused on holding the assets of the startups and invested significant amount of funds into long duration high yeild bonds, which caused a liquidity issue when customers were looking to make withdrawals.

The bailout of the Bank is not a traditional bailout in that they are only backing depositors, not shareholders and executives. Although several Executives sold millions of dollars worth of stock weeks prior to the bank run. The Banks CEO Greg Becker, who sold $3.6 million in shares, lobbied to deregulate SVB based on its total assets, since they are not "systemically risky". This is thoroughly covered by Coffeezilla in...

Banks are Collapsing...Heres Why