Despite being hailed as one of ‘America’s Best Banks’ by Forbes magazine about a month ago, the Silicon Valley Bank (SVB) was forced to shut shop on Friday (March 10). The Background of the ControversyOn Friday (March 10), the Federal Deposit Insurance Corporation (FDIC) announced the shutdown of the US-based Silicon Valley Bank (SVB) and the seizure of its assets. Reportedly, the crisis came to light on March 8 this year after SVB Financial Group (parent organisation of Silicon Valley Bank) announced a sale of $21 billion of its securities. As a result, the Silicon Valley Bank shares fell 60%, leading to a whopping loss of $80 billion. Many venture capitalists instead instructed portfolio companies to minimise their exposure to Silicon Valley Bank, withdraw their cash, and look for other lenders (thus further exacerbating the crisis).

Source: Forbes March 11, 2023 17:04 UTC