On Friday, United States regulators seized the assets of the Santa Clara, California-based bank after depositors began withdrawing funds en masse amid fears over the lender’s financial health.
As economic conditions for the tech sector became more straitened following the pandemic boom, many of SVB’s customers began to draw on their funds to stay afloat. Facing a cash shortage, SVB was forced to sell its bonds at big losses, prompting concerns about its financial health. Within 48 hours, spooked depositors had withdrawn enough funds to cause the bank’s collapse.
"It does seem that it catered to a particular clientele, and we all know that tech has taken a hit — and if you’re undiversified, you’ll take the hit also," Harvey told Al Jazeera. US President Joe Biden has sought to assure the public the situation is contained, saying,"Americans can have confidence that the banking system is safe."
As of December, the lender had $209.0bn in assets and $175.4 bn in total deposits, according to the Federal Deposit Insurance Corporation. Although SVB’s customers ultimately had their deposits guaranteed, the full effect of the lender’s implosion on the startup scene may not be apparent for some time.While the fallout of SVB’s collapse is still playing out, economists broadly agree that its failure is markedly different from the implosion of financial institutions, such as Bear Stearns and Lehman Brothers, that precipitated the 2007-08 global financial crisis.
_Business It's not SBV but SVB. Mzansi has VSB than was looted and crumbled
_Business But KPMG had a lot of questions to answer. Are clean audits a myth? Some think they are...
_Business Some had the inevitable benefit of the financial crisis early warning system.. this is America Jack.😁
_Business By this morning 4 other US banks had collapsed.
_Business Must be the ANC
_Business SBV = VBS (switched) 😄
_Business Go woke go broke
_Business To pave the way for a digital currency called Amero
_Business The Great Reset/ New World Order agenda to pave the way for introduction of Digital Currency.
_Business It’s SVB not SBV News24
_Business SBV, VBS
_Business Don't proof read?
_Business Say no to CBDC's plan to usher in on the back of bank collapses. CBDC's will come with social credit scores, controlling what you can buy, where you can go! Total slavery!! Card declined, and you have already filled your tank with gas. Transaction declined. for the environment!
_Business SBV?
United States United States Latest News, United States United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Kieswetter hooks Coronation: Why this matters for business in SAOn February 7, the Supreme Court of Appeal handed down a surprise ruling that forced South Africa’s third-largest investment manager to scrap its half-year dividend, and sent shivers down the spines of all other companies with offshore operations. What are the odds Coronation can get this overturned at the Constitutional Court?
Source: FinancialMail - 🏆 20. / 63 Read more »