Silicon Valley Bank, a major lender to technology startups and venture capital firms, collapsed in March 2023 after a rapid bank run triggered by losses on its long-term bond holdings amid rising interest rates, marking the second-largest bank failure in U.S. history at the time. U.S. regulators took over the bank and guaranteed all deposits, including those above the standard insurance limit, to prevent wider contagion across the technology and banking sectors. This description is adapted from Wikipedia contributors under CC BY-SA 4.0; changes were made. https://creativecommons.org/licenses/by-sa/4.0/
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Silicon Valley Bank's failure in March 2023, the second largest bank failure in United States history at the time, triggered emergency federal action to guarantee depositors and renewed scrutiny of bank interest rate risk management.
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1. Wikipedia, Collapse of Silicon Valley Bank
WikipediaLead section, opening paragraph
On March 10, 2023, Silicon Valley Bank (SVB) failed after a bank run, marking the third-largest bank failure in United States history and the largest since the 2008 financial crisis.
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Companies Involved: Silicon Valley Bank, Receivership section, opening paragraph
Several hours later, the California Department of Financial Protection and Innovation seized SVB citing inadequate liquidity and insolvency, and placed it into the receivership of the Federal Deposit Insurance Corporation (FDIC). The failure of SVB was the largest by assets of any bank since the 2008 financial crisis and the second-largest failure of an FDIC-insured bank.
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