Silicon Valley Bank

Stock markets in Europe fell on Monday as investors remained spooked by the collapse of Silicon Valley Bank (SVB), despite efforts to limit the fallout.

Even if you don't invest money directly yourself, there are millions of people with a pension - either private or through work - who will see their savings invested by pension schemes. The US has now agreed a rescue deal for customers of SVB, with all depositors fully protected. Silicon Valley Bank - which specialised in lending to technology companies - was shut down by US regulators who seized its assets on Friday. On Monday, HSBC announced it was buying SVB's UK arm for £1. The deal followed a frantic weekend of talks as the government and Bank of England sought a solution, and the news bought relief to UK tech firms who feared going bust without support. It was the biggest failure of a US bank since the financial crisis in 2008.

US authorities say they will guarantee all customer deposits after two banks collapse and spark crisis fears.

SVB started as a California bank in 1983 and expanded rapidly as the tech sector boomed. And the pressure on small- and medium-sized banks hasn't gone away. It came after SVB had scrambled to raise money to plug a loss from the sale of assets affected by higher interest rates. The criticism is that they should have foreseen this and they didn't. That won't stop regulators looking into what went wrong and what rules need to change. SVB - which specialised in lending to technology companies - was shut down by regulators on Friday. "I'm not an economist so I don't know the ramifications of this but I know that as a business operator we rely on the cash that we have in the bank." Taxpayers will not bear any losses from the move, which extends protection beyond the $250,000 (£205,000) in deposits typically insured by the government. Once again there is intense debate about bailouts. Since most banks are well diversified and have plenty of cash on hand, the assumption is that the risk to the rest of the banking sector is low. Once again people are worried about banks. "Building a culture of government intervention does nothing to stop future institutions from relying on the government to swoop in after taking excessive risks," he said.

President Biden also said insiders and investors won't be bailed out, but that companies that used the bank will be able to pay their employees and bills.

"The management of these banks will be fired," he said. The solution they reached, he said on Sunday, "protects workers, small businesses, taxpayers and our financial system." The president spoke as regulators strive to shore up confidence in the banking system and prevent runs like the one that triggered the stunning collapses of Silicon Valley Bank and New York-based Signature Bank. banks should have confidence that their money will be there when they need it, as he seeks to limit the damage done by the collapse of Silicon Valley Bank and other problems. They knowingly took a risk, and when the risk didn't pay off, investors lose their money. Biden spoke from the White House at 9 a.m.

LONDON: HSBC said on Monday it is acquiring the UK subsidiary of stricken Silicon Valley Bank for 1 pound, rescuing a key lender for technology start-ups in ...

SVB UK is ringfenced from the U.S. The wider UK banking system remains safe, sound, and well capitalised." "No other UK banks are directly, materially affected by these actions, or by the resolution of SVBUK’s U.S.

Stock markets fail to be reassured by Joe Biden's intervention, as SVB failure is followed by Signature.

First Republic and PacWest have exposure to venture capital clients in the tech sector, the same area of investment that was exposed by Silicon Valley Bank’s collapse. The yield on the US Treasury 10-year note was down 14 basis points to 3.5562%. Depositors in Signature and SVB are protected by the overnight federal intervention, along with any other that runs into difficulties, but investors in both have been wiped out. Charles Schwab was down by a quarter. Joe Biden sought to bring calm at the start of the week, saying: “Americans can rest assured that the banking system is safe, their deposits are safe … [Nasdaq](https://www.theguardian.com/business/nasdaq) down 0.8%.

The online system for opening an account at SVB had allowed the use of a Chinese mobile number for verification, a Chinese tech startup founder said.

Most were at JPMorgan Chase, Citigroup and Bank of China (Hong Kong), Zai Lab said in an official statement. Along with the backing of a mainstream venture capitalist, a startup could open an account at SVB within a week, the source said in Mandarin, according to a CNBC translation. Regulatory pressure from both Beijing and Washington, D.C., has restricted the growth of that The source highlighted that they once had tens of millions of U.S. It was not immediately clear how many China-based startups had SVB accounts. [Everest Medicines](/quotes/1952-HK/) said it had less than 1% of its cash at SVB, and that it expects to recover most of its deposits at the bank through the U.S. However, the CNBC source noted many China-based startups with U.S. [Zai Lab](/quotes/ZLAB/) said that as of the end of December, about 2.3% of its roughly $1.01 billion in cash and cash equivalents were held at SVB. It can take up to 3-6 months," he said. Having a bank account with SVB allowed China-based startups to tap funding from U.S.-based investors, with an eye to a public offering in the U.S. The online system for opening an account at SVB had allowed the use of a Chinese mobile number for verification, according to one Chinese tech startup founder who requested anonymity due to the sensitive nature of the situation. - The online system for opening an account at SVB had allowed the use of a Chinese mobile number for verification, a Chinese tech startup founder said.

No other UK banks are directly materially affected by these actions, or by the resolution of SVBUK's US parent bank. The wider UK banking system remains safe, ...

This condition, along with conditions 3 and 4, are determined by the Bank of England, in consultation with HMT, the PRA and the FCA, Today’s decisions followed consultation between the PRA, the Bank of England, the FCA, and HM Treasury against the special resolution objectives laid down in the Banking Act 2009. However, the scale of the deterioration of liquidity and confidence means that in the view of the Bank and the PRA the position was not recoverable. These stabilisation tools are exercised through the use of the Bank of England’s stabilisation powers. The Bank considered that the conditions for exercising stabilisation powers under the Banking Act 2009 were met. Resolution Condition 1 is that the bank is failing or likely to fail. The relative weighting and balancing of objectives will vary according to the particular circumstances of each failure, including both: (a) circumstances specific to the distressed firm; and (b) general circumstances relating to the wider financial system. The Bank of England (Bank), in consultation with the Prudential Regulation Authority (PRA), HM Treasury (HMT) and the Financial Conduct Authority (FCA), has taken the decision to sell Silicon Valley Bank UK Limited (‘SVBUK’), the UK subsidiary of the US bank, to HSBC UK Bank Plc (HSBC). HM Treasury and the Bank of England tools for dealing with distressed UK banks and building societies. Therefore, the Bank of England decided, in consultation with HMT, PRA and FCA, to use the resolution powers for stabilising failing banks that were brought in following the financial crisis. Given the emergence of a credible purchaser for SVBUK the Bank has determined that using its resolution powers for stabilising failing banks is appropriate. This action has been taken to stabilise SVBUK, ensuring the continuity of banking services, minimising disruption to the UK technology sector and supporting confidence in the financial system.

That's how capitalism works,” Biden said Monday about equity stakeholders in the failed banks wholly losing their investments after depositors were saved by ...

Silicon Valley Bank’s failure [marks](https://www.forbes.com/sites/conormurray/2023/03/10/what-to-know-about-silicon-valley-banks-collapse-the-biggest-bank-failure-since-2008/?sh=64dd650e3a21) the largest bank closure since 2008 and the second-largest in U.S. [shuttered](https://www.forbes.com/sites/tylerroush/2023/03/10/svb-shut-down-by-california-regulator-after-bank-stocks-crash-amid-turmoil/?sh=4c683b972897) the Santa Clara-based Silicon Valley Bank on Friday shortly after a run on its deposits and a collapse in its share price as the company failed to quell investor fears. Elizabeth Warren (D-Mass.) took issue with Biden’s oversight of the pseudo-bailout to protect “billion-dollar crypto firms” in a Monday column in the New York Times, writing: “Regulators have said that banks, rather than taxpayers, will bear the cost of the federal backstop required to protect deposits. Regulators also closed New York-based Signature Bank on Sunday, while crypto-focused Silvergate [shut its doors](https://www.forbes.com/sites/brianbushard/2023/03/08/crypto-bank-silvergate-will-shut-down-amid-financial-problems/?sh=28604ab672b3) Wednesday after it failed to recover from the impact of the collapse of its one-time client FTX, the crypto exchange founded by the disgraced former billionaire Sam Bankman-Fried. [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=4bac8b7f216c) (Forbes) [What To Know About Silicon Valley Bank’s Collapse—The Biggest Bank Failure Since 2008](https://www.forbes.com/sites/conormurray/2023/03/10/what-to-know-about-silicon-valley-banks-collapse-the-biggest-bank-failure-since-2008/?sh=398db2523a21) (Forbes) We’ll see if that’s true.”

Silicon Valley Bank (SVB) collapsed with astounding speed on Friday. Investors are now on edge about whether its demise could spark a broader banking ...

“While SVB is a major failure, [it] and other niche players like Signature are quite unique in the broader banking world,” research analysts David Covey, Adrian Cighi and Jaimin Shah at M&G Investments commented in a blog post on Monday. They also highlight that SVB had very heavy exposure to the tech sector, which has been particularly hard hit by rising interest rates. [(FRC)](https://money.cnn.com/quote/quote.html?symb=FRC&source=story_quote_link) and PacWest Bancorp [(PACW)](https://money.cnn.com/quote/quote.html?symb=PACW&source=story_quote_link) was temporarily halted Monday after the shares plunged 65% and 52% respectively. “Let me be clear that during the financial crisis, there were investors and owners of systemic large banks that were bailed out … By Friday morning, trading in SVB shares was halted and it had abandoned efforts to raise capital or find a buyer. Deposits ballooned from $62 billion to $198 billion over that period, as thousands of tech startups parked their cash at the lender. “I think we can all relax a bit today,” he told CNN. At the same time, they were struggling to raise new venture capital funding. Shares in embattled Swiss banking giant Credit Suisse were down 9%. The portfolio was yielding an average 1.79% return last week, far below the 10-year Treasury yield of around 3.9%, Reuters reported. The bank’s assets, which include loans, more than tripled from $71 billion at the end of 2019 to a peak of $220 billion at the end of March 2022, according to financial statements. Investors are now on edge about whether its demise could spark a [broader banking meltdown](https://edition.cnn.com/2023/03/10/investing/svb-banking-crisis-what-next).

The BBC talks to some of the UK-based tech firms which had accounts with Silicon Valley Bank.

"If I knew the answer to that..." I was in a WhatsApp groups with other founders and opinion was split." It's shaken everybody in the VC [venture capital] world to their core." "I hope so," she said. But when I ask why, nobody is quite sure. The one thing everyone I have spoken to had in common was that not only was SVB their main bank - it was their only bank.

The speed of SVB's collapse was a surprise but central bankers can learn lessons from this failure.

Even if the failures of SVB and Signature prove to be no more than “little local difficulties” ( Indeed, the Federal Reserve, alongside other central banks, has [raised rates](https://www.cnbc.com/2023/03/07/fed-chair-powell-says-interest-rates-are-likely-to-be-higher-than-previously-anticipated.html) from a band of 0.25%-0.5% to 4.5%-4.75% over the past 12 months. The world’s central bankers are treading a narrowing path of trying to combat inflation without harming financial stability. It is not a major player in the world’s financial system. The news of the sales made depositors withdraw more funds, which had to be funded through more sales. At the same time, these higher rates resulted in falling prices for the bonds in which SVB had been investing. Only [the collapse of Washington Mutual](https://www.reuters.com/article/us-washingtonmutual-jpmorgannews1-idUSTRE48P05I20080926) during the 2008 global financial crisis was larger. This is because interest rates were soaring, thanks to the Fed’s rate hikes. During the pandemic, tech startups with spare cash from funding rounds in a world of easy money placed their deposits with SVB. [SVB was worth US$44 billion](https://www.ft.com/content/f55df9d1-386a-4643-8194-095228741054) and managed over $200 billion in assets. Tech firms around the world have their cash locked up in SVB deposits and were concerned about how they would pay their workers and their bills until But in the world of finance, it seems everything can change in just two days.

Startups are gradually regaining access to funds held with Silicon Valley Bank UK after HSBC took over the collapsed bank.

From conversations with other Silicon Valley Bank UK account holders, Healey added that pending transactions are now starting to be processed. Our clients should not notice any significant changes, however, there may be short delays across the next few days as we return to business as usual. Lingumi co-founder and CEO Toby Mather told UKTN he can see transfers made on Friday. Thanks for the support He added that he intends to support the new Silicon Valley Bank UK with HSBC and intends on reversing all the emergency transactions. Startups are gradually regaining access to funds held with Silicon Valley Bank UK after HSBC took over the collapsed bank in a last-ditch rescue deal.

We usually don't get into the weeds about bond market moves, but they're important to understanding the second-biggest bank collapse in U.S. history.

We don't usually get into this level of detail on fixed income at the Club — but in this case, it's important to understanding the second-biggest bank collapse in U.S. Following the fall of Silicon Valley Bank, a lot of terms are being thrown around on CNBC and elsewhere in discussions about what went wrong. A bank is also in the business of making money and needs to generate at least enough money on those deposits to pay off the interest. One key term is "duration risk" along the yield curve in the bond market. In fact, according to SVB's fourth-quarter release, the portfolio duration of its fixed-income securities was 5.6 years and the hedge-adjusted duration was also 5.6 years. A bank makes money on the spread, or net interest margin (NIM), between what it's paying in interest to depositors and what it's generating in interest from loans and other investments. In other words, a bond is expected to drop in price by its duration multiplied by the percentage change in rates. In order to generate a profit and more than cover the interest owed on deposits, a bank will take that money and lend it at a higher rate. An average duration of 10 years would see the portfolio fall by 10% for every 1 percentage point increase in rates and 20% in the event of a 2 percentage point increase in rates, and so on. On the other hand, the market value of the investments the bank makes with those deposits can fluctuate greatly between the time of the initial investment and the maturity date. The bank takes in deposits and is therefore on the hook when the depositor requests a withdrawal. In the end, the rush of clients demanding to withdraw money from SVB led to U.S.

The California-based tech startup lender was shut down by the state's financial regulator Friday, and the government unveiled a plan to protect depositors ...

[Silvergate](https://www.forbes.com/sites/brianbushard/2023/03/08/crypto-bank-silvergate-will-shut-down-amid-financial-problems/?sh=4aad70672b35) on Wednesday sparked fears of [contagion](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=4ac94fb329bf) and drew uncomfortable comparisons to the Great Recession. While deposits came in, SVB [invested](https://www.wsj.com/articles/silicon-valley-bank-crisis-unsettles-bank-investors-bc4ee834?mod=article_inline) in debt like U.S. Silicon Valley Bank ranked as the [16th-largest bank](https://www.federalreserve.gov/releases/lbr/current/) in the United States based on assets prior to its collapse. But [shares](https://www.nytimes.com/2023/03/10/business/svb-silicon-valley-bank-explainer.html) of some of the nation’s largest banks, including JPMorgan, Wells Fargo and Citigroup, were up Friday after slumping on Thursday. [deposited](https://www.wsj.com/articles/silicon-valley-bank-svb-financial-what-is-happening-299e9b65) billions, bringing the bank from $60 billion in total deposits at the end of the first quarter 2020 to nearly $200 billion two years later. “Americans can rest assured that our banking system is safe. [said](https://www.forbes.com/sites/dereksaul/2023/03/13/biden-says-saving-silicon-valley-bank-helped-economy-breathe-easier-but-not-all-experts-agree/?sh=e5a765e18a99) Monday morning. Amid the surge in withdrawals, SVB sold assets (including bonds that had lost value due to interest rate increases) which [created](https://www.bloomberg.com/news/articles/2023-03-10/why-svb-was-hit-by-a-bank-run-and-where-it-could-lead-quicktake) $1.8 billion in losses. history (right behind SVB). [failure](https://www.nytimes.com/2023/03/09/business/silicon-valley-bank-investors-worry.html) came as the bank had roughly $300 billion in assets. [sold shares](https://www.nytimes.com/2023/03/09/business/silicon-valley-bank-investors-worry.html). [closed](https://www.forbes.com/sites/tylerroush/2023/03/10/svb-shut-down-by-california-regulator-after-bank-stocks-crash-amid-turmoil/?sh=24c194512897) Friday morning by the state’s financial regulator, the Federal Deposit Insurance Corporation announced, becoming the largest bank to [fail](https://www.nytimes.com/2023/03/10/business/silicon-valley-bank-stock.html) since the 2008 financial crisis.

But the sudden collapse of Silicon Valley Bank and Signature Bank shows how in an age of instant communication and social media, a financial panic can go into ...

Silicon Valley and Signature are the second- and third-largest bank failures, respectively, in U.S. Jonas Goltermann, a senior economist at Capital Economics in London, agrees that social media has helped drive the bank runs in recent days. Meanwhile, OpenAI CEO Sam Altman, referring to the bank collapses that preceded the Great Recession, [tweeted](https://twitter.com/sama/status/1634958183394582528?s=20) on Sunday that "The world has changed since 2008; the speed of a cascade could be very fast." [among them](https://www.reuters.com/business/finance/global-firms-with-exposure-collapsed-svb-2023-03-13/) companies such Roku and a slew of high-value startups — scrambling to withdraw cash and causing the bank to go under. New York's Signature Bank, heavily exposed to cryptocurrencies and the tech sector, followed suit in short order over the weekend. Say "bank run" and many people conjure black-and-white photos from the 1930s — throngs of angry depositors clamoring for their money.

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On March 10, the FDIC's first step was to create the Deposit Insurance National Bank of Santa Clara (DINB) to protect insured deposits of SVB customers and ...

Gruenberg](https://www.fdic.gov/news/press-releases/2023/pr23017.html) stating that “[a]fter receiving a recommendation from the boards of the FDIC and the Federal Reserve, and consulting with the President, Secretary Yellen approved actions enabling the FDIC to complete its resolution of Silicon Valley Bank, Santa Clara, California, in a manner that fully protects all depositors. Because this information is general in nature and may not pertain to your specific circumstances, you should not act or refrain from acting based on any information without first obtaining advice from professional counsel or other advisers qualified in the applicable subject matter and jurisdictions. As with SVB, the announcements relating to Signature Bank affirmed that banking activities, including online banking, would resume on March 13. Without limiting the foregoing, this information may not reflect recent developments in the law, may not be complete, and may not be accurate in or applicable to your jurisdiction or banking relationship. [transferred all deposits](https://www.fdic.gov/news/press-releases/2023/pr23019.html) – insured and uninsured – and substantially all assets of SVB to a newly created, full-service FDIC-operated “bridge bank” named Silicon Valley Bank, N.A. In its announcement, the Federal Reserve said that it “is prepared to address any liquidity pressures that may arise.” Depositors will have access to all of their money starting Monday, March 13.” According to [FDIC regulations](https://www.fdic.gov/regulations/laws/rules/1000-1240.html), the term “qualified financial contract” includes any securities contract, commodity contract and repurchase agreement. On the evening of Sunday, March 12, however, government officials issued a joint press release stating, in part, that Secretary of the Treasury Janet L. On March 10, the FDIC’s first step was to create the Deposit Insurance National Bank of Santa Clara (DINB) to protect insured deposits of SVB customers and facilitate the resolution of the bank. Also on March 12, in the wake of the closing of SVB, the New York State Department of Financial Services took possession of Signature Bank and appointed the FDIC as receiver of that bank. SVB’s sudden failure going into the weekend created significant uncertainty – and prompted many questions about the ability to access accounts and funds held at the bank at the time it closed.

The government took drastic action to shore up the banking system and make depositors of two failed banks whole. It quickly drew blowback.

To some extent, it is a [victim of the panic around Silicon Valley Bank](https://www.nytimes.com/2023/03/12/business/signature-bank-collapse.html?action=click&pgtype=Article&state=default&module=styln-svb-collapse&variant=show®ion=MAIN_CONTENT_1&block=storyline_top_links_recirc). “Big picture, this was the right thing to do,” said Christina Parajon Skinner, an expert on central banking and financial regulation at the University of Pennsylvania. “We have this implicit guarantee for everyone, but not the rules and regulations that should be paired with these guarantees.” That could merit new safeguards to guard against future danger, said William English, a former director of the monetary affairs division at the Fed who is now at Yale. “But if you don’t have that, what is limiting the risk-taking of banks?” [ill-fated decisions and panicked customers](https://www.nytimes.com/2023/03/10/business/silicon-valley-bank-stock.html?action=click&pgtype=Article&state=default&module=styln-svb-collapse&variant=show®ion=MAIN_CONTENT_1&block=storyline_top_links_recirc), Silicon Valley Bank became the [biggest U.S. “Investors in the banks will not be protected,” Mr. The point was to avert a bank run that could tank the financial system and broader economy. While the definition of “bailout” is ill defined, it is typically applied when an institution or investor is saved by government intervention from the consequences of reckless risk-taking. “I’ll call it a bailout of the system,” Mr. “It lowers the threshold for the expectation of where emergency steps kick in.” But even before the verdict was in, lawmakers, policy researchers and academics had begun debating whether the government had made the correct move, whether it would encourage future risk-taking in the financial system and why it was necessary in the first place.

Asia markets tumbled in a volatile session, continuing sharp losses seen on Wall Street as investors grapple with the fallout of failed banks in the U.S., ...

banking system is safe after regulators scrambled over the weekend to create a plan [to backstop deposits at Silicon Valley Bank and Signature Bank](https://www.cnbc.com/2023/03/12/regulators-unveil-plan-to-stem-damage-from-svb-collapse.html). Also, the management of the banks will be replaced and bank investors will not be protected, he said. The review will focus on the review and supervision of SVB, which the Fed oversees in its role as a regulator. The S&P 500 fell 0.15%, and the [Nasdaq Composite](https://www.cnbc.com/quotes/.IXIC/) gained 0.45%. dollar and the offshore Chinese yuan also weakened to 6.8591 against the greenback. [Toyota Motor Corp](/quotes/7203.T-JP/) shed the most and traded 4.37% lower. [embassy in the U.S. Barr has been tapped for the probe, the results of which will be released to the public May 1. In Australia, the [S&P/ASX 200](/quotes/.AXJO/) slid 1.66%, largely led by losses in the banking sector. The country scrapped inbound quarantine requirements in early January. [Hang Seng index](/quotes/.HSI/) fell 0.97% – seeing smaller losses than its regional peers. [Kospi](https://www.cnbc.com/quotes/.KS11/) also fell by 1.9% and the Kosdaq was 2.5% lower.

The collapse of SVB isn't just a tech industry problem—as the rest of the world is about to find out.

But the reality is very few of us are Luddites,” Kunst says. The bank's customers may now be getting their money back but the services SVB once provided are gone. The second- and third-order impacts of startups hitting financial trouble or just slowing down could be more pernicious. If they and other SVB customers suffer cash crunches or cut back expansion plans, rent payments in many parts of the world may be delayed and staff may no longer buy coffees and lunches at the corner deli. Yet the shock to the tech ecosystem and its elite may still bring down a reckoning for many who believe it’s got nothing to do with them. The power of the West Coast tech industry means that most digital lives are rarely more than a single degree of separation away from a startup banking with SVB.

The Biden administration has taken pains to avoid the word "bailout" in describing the effort to rescue Silicon Valley Bank depositors.

"Like if you pay a bond for someone to get out of jail, rescuing someone when they're in trouble," he said. "In the long run, that's a subsidy because we are paying for more than what we had insured." The White House does not want to be associated with "the connotation of rescuing fat cats, rescuing bankers," he said. "This is absolutely a bailout, plain and simple." "The venture capital firms and the startups are being bailed out. Which is to say, the lifeline to Silicon Valley depositors will not use public taxpayer money.

Economists see Lehman Brothers-style crisis as unlikely despite jitters following collapse of California-based lender.

“We will know if this is working or if there is wide-spread fallout from SVB’s failure in the next few days,” he added. Even the banks that have made stupid mistakes mostly lose their own money and not that of depositors.” This should give banks the liquidity they need to meet any unexpected demand for cash from their depositors,” Chittenden told Al Jazeera. “SVB collapsed because of a stupid rookie mistake with their interest-rate-risk management: They invested short-term deposits into long-term bonds. As SVB’s name suggests, the bank’s business was heavily catered towards US tech startups. Facing a cash shortage, SVB was forced to sell its bonds at big losses, prompting concerns about its financial health. “The vast majority of banks in the US are financially sound and with the new BTFP, depositors should feel at ease.” “It is an unusual bank in that it is not one of the big banks, though it is substantial,” Harvey said. SVB was the 16th-largest bank in the US and has been described as a mid-tier lender rather than one of the major players. Since then, financial regulators around the world have raced to contain the fallout of SVB’s collapse, the biggest bank failure in the US since 2008, and shore up confidence in the global financial system. Nonetheless, bank shares, including those of the US “big four” — JPMorgan Chase, Bank of America, Wells Fargo, and Citibank — have dipped sharply amid fears of contagion across the financial sector. Two days after the collapse of SVB, US regulators seized the assets of Signature Bank, a New York-based lender known for its business with the cryptocurrency sector, marking the third-largest bank failure in US history.

The US lender filled a niche for European tech companies that no one else could, or would.

But at the heart of that system was the bank’s London-based subsidiary, [established in 2012](https://www.svb.com/news/company-news/silicon-valley-banks-uk-branch-opens-for-business), which helped startups across the EU with funding, loans, and accounts. “I'd love it if a homegrown UK business was doing this role, but in the absence of that, Silicon Valley did it and did it really well.” Silicon Valley Bank was embedded in Europe’s tech sector via a series of affiliated businesses and offices. In the Netherlands, the bank was [in discussions about how](https://www.linkedin.com/in/rinkezonneveld/recent-activity/) to finance more local companies. [$500 million](https://www.fintechfutures.com/2019/07/silicon-valley-bank-lends-e266m-to-innovative-irish-companies/) in technology and life science startups by 2024. In Ireland, the bank had planned to invest more than

It's well known that the shutdown of Silicon Valley Bank was the largest US bank failure since the 2008 financial crisis. What is less talked about is the ...

In a [press release](https://www.svb.com/news/company-news/svb-included-in-bloomberg-gender-equality-index-for-fifth-year) from January 2023, celebrating the 5th year in a row that SVB was named to the Bloomberg gender equality index, bank president and CEO, Greg Becker, said: “We have a responsibility and a unique opportunity to ensure women and people of underrepresented groups can access, contribute to and benefit from the enormous potential of the innovation economy.” While the short-term needs of those that banked with SVB are being addressed by the FDIC, the weeks and months ahead will be telling. “SVB filled a need for female founders, and they were able to demand very stringent terms because of it, including clauses that prevented those women-owned companies from having secondary accounts elsewhere.” While the data around the demographics of SVB’s depositors is not readily available, anecdotal information reveals that SVB was often the only banks that would provide credit and loans to historically underbanked founders. One example of their compromising terms was that they required founders with debt vehicles through SVB to exclusively bank with them. We shall see which banks help underrepresented founders in this crisis live to see another day.” Liz Giorgi, the CEO and co-founder of soona, shared that she had applied for lines of credit at 27 banks before finally being approved by SVB, despite having run a profitable, multimillion dollar business for seven years prior. Despite that significant diversification in founder identities, the study showed that while 70% of white business owners were approved for the small business loans they applied for, only 30% of Hispanic owners and 55% of Black owners were approved. “If it is not contained, then I think it might be untenable for me to continue building Kabila. [shutdown of Silicon Valley Bank](https://www.nytimes.com/2023/03/10/business/svb-silicon-valley-bank-explainer.html) was the largest US bank failure since the 2008 financial crisis. [study from Gusto](https://gusto.com/company-news/new-business-owner-survey-2022) found that in 2021, 49% of new business owners were women (up 75% from 2019), 10% were Hispanic (up 25% from 2019) and 9% were Black (up 300% from 2019). What is less talked about is the disproportional impact this has on women founders and founders of color, who have historically been underbanked.

She'd been trying for days as chaos reigned across the banking system. Hoell is one of hundreds of startup founders mired in the collapse of Silicon Valley Bank ...

She was desperate to make sure she could make payroll on Monday, which is why she started driving around to any bank she could find to open a checking account. "We were just able to wire them a one-time payment through my personal account." "Now it's just tactical," Hoell said. "We felt relieved, but still unsure – we will be able to truly breathe easier when our wires have cleared into our new bank account," Pham said. "The question is—after this, we don't know yet." It felt like we were just throwing mud at a wall to see if we could make progress in any way possible." "I'm like, 'am I supposed to just say, 'I'm Lindsey Hoell and I have all this money in this account?'... After frantically trying to wire out money on Thursday and not succeeding, she also drove to a branch on Friday. Silicon Valley Bank is a 40-year-old institution based in Santa Clara, Calif., that catered to nearly half of all U.S. Silicon Valley Bank's website was still down early Monday, but by mid-morning appeared to be functioning. By the end of lunch, panic had set in. "If it hadn't been me, it would have been comical because it was so absurd.

SILICON Valley Bank's new boss Tim Mayopoulos on Monday told clients that the lender is open and conducting business as usual, according to a letter seen by ...

I was part of the new leadership team that joined Fannie Mae in the wake of the financial crisis in 2008-09, and I served as the CEO of Fannie Mae from 2012-18," Mayopoulos added in the letter. "I look forward to getting to know the clients of Silicon Valley Bank...I also come to this role with experience in these kinds of situations. Federal Deposit Insurance Corporation had tapped former Fannie Mae head Mayopoulos as CEO of the newly created entity, named Silicon Valley Bank N.A, after the regulator took control of SVB following its collapse that crippled stocks and triggered concerns of a contagion throughout global markets.

Proposed class-action lawsuit claims bank failed to reveal how rising interest rates made it 'particularly susceptible' to failure.

According to TechCrunch, a statement sent by Mayopoulos to clients said the bank is “conducting business as usual”. “Arguably, liquidity measures should have stopped these dynamics but Main Street has been watching news and queues – not financial plumbing.” “Americans can rest assured that our banking system is safe. Rating agency Moody’s on Monday downgraded the debt ratings of the collapsed Signature Bank deep into junk territory and placed the ratings of six other US banks under review for a downgrade. The news came as shock waves from the collapse of SVB pounded global bank stocks further on Tuesday, with calls for calm from Biden and other policymakers doing little to reassure markets and prompting some analysts to The bank’s shareholders accuse SVB Financial Group chief executive Greg Becker and chief financial officer Daniel Beck of concealing how rising interest rates would leave its Silicon Valley Bank unit “particularly susceptible” to a bank run.

SHOCKWAVES from the collapse of Silicon Valley Bank pounded global bank stocks on Tuesday as assurances from President Joe Biden and other policymakers ...

12, tracking declines in the London-listed counter. - Reuters - U.S. *Startup-focused lender SVB Financial Group on March 10 became the largest bank to fail since the 2008 financial crisis, in a collapse that roiled global markets. *In Britain, HSBC bought the UK arm of Silicon Valley Bank for a symbolic one pound on Monday, rescuing a key lender for technology startups in England. SHOCKWAVES from the collapse of Silicon Valley Bank pounded global bank stocks on Tuesday as assurances from President Joe Biden and other policymakers failed to calm market worries about contagion and prompted a rethink on the interest rate outlook.