The biggest bank failure in more than a decade was Silicon Valley Bank (SVB) in the latest “act of drama” as tech startups’ established customer base was shaken and they rushed to withdraw their deposits.
This is the second “victim” this week after Silvergate Capital Corp announced it was going single-handedly to liquidate its banking operations, prompting a sell-off in banking stocks and fears that other banks would suffer the same fate.
Under these circumstances, the California regulator announced the closure of the Silicon Valley bank and appointed the Federal Deposit Insurance Corporation (FDIC) as administrator.
Trading in shares was halted earlier after a 66% drop in their price in pre-conference trading on Wall Street.
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Source: Kathimerini
Lori Barajas is an accomplished journalist, known for her insightful and thought-provoking writing on economy. She currently works as a writer at 247 news reel. With a passion for understanding the economy, Lori’s writing delves deep into the financial issues that matter most, providing readers with a unique perspective on current events.