ALBAWABA - On Friday, Silicon Valley Bank was closed down, after it was unable to meet the huge withdrawals of its customers.
The U.S. authorities shut down the bank and imposed their supervision on it.
According to the information circulated, it will reopen Monday under a new name.
Regulators closed down one of Silicon Valley’s most important banks on Friday, marking the largest bank failure since the Great Recession and the second-biggest in U.S. history.
— The Washington Post (@washingtonpost) March 11, 2023
Here is what to know about SVB and its possible impact on the tech sector.
https://t.co/CGEgkmtSyd
It is said that the bank was unable to meet the huge withdrawals made by its customers, and its attempts to raise capital quickly did not succeed.
BREAKING: Silicon Valley Bank is closed by California regulators. It's the first FDIC-insured bank to fail this year https://t.co/eIu9cH52Tg pic.twitter.com/ABv9sAMAe1
— Bloomberg (@business) March 10, 2023
The closure of Silicon Valley sparked a wave of panic and anxiety, amid questions in the markets about the consequences of this closure.
Please read an announcement about Silicon Valley Bank from the Federal Deposit Insurance Corporation (FDIC): https://t.co/de9fHse6nq. The FDIC will be in touch with additional information when it is available. For any media inquiries, please contact [email protected].
— SVB (@SVB_Financial) March 11, 2023
It is considered the largest U.S. bank failure since the financial crisis in 2008 and the second largest retail bank failure in the U.S.
Silicon Valley specialized in financing startups and has become the 16th largest U.S. bank in terms of assets.
According to official figures, as of the end of 2022, the bank had assets worth $209 billion and deposits amounting to $175.4 billion.
