On Friday, the 10th of March, Silicon Valley Bank based in Santa Clara, California collapsed, making it the second-largest bank to fail in the history of the United States. Following this dip in the value of these securities, the value of the Silicon Valley Bank bonds dropped by $15 billion. On March 8th, the Silicon Valley Bank disclosed the sale of bonds worth $21 billion. There have been reports which claimed that the Silicon Valley Bank pampered some of its major clients with special benefits in exchange for large unsecured funds which they could keep over a short period of time. Response:In a statement made by Senator Elizabeth, she said that Silicon Valley Bank’s unusually close relationship with its clients increased the threat of contagion.

Source: ABC News April 12, 2023 06:05 UTC