Silicon Valley Bank Collapses After Failing to Raise Capital
Silicon Valley Bank collapsed on Friday morning after a stunning 48 hours in which a bank run and a capital crisis led to the second-largest failure of a financial institution in US history.
California regulators closed down the tech lender and put it under the control of the US Federal Deposit Insurance Corporation.
The bank’s depositors – mostly technology workers and venture capital-backed companies – hurried to withdraw money this week as anxiety over the bank’s health spread. It is now considered as one of Silicon Valley’s top banks that failed after its long-established customer base of tech startups grew worried and yanked deposits.
This event marks one of the largest failures of a US financial institution since the height of the financial crisis almost 15 years ago.