Silicon valley Bank Fails - Regulators have frozen the assets of one of Silicon Valley's top banks, marking the biggest failure of a US financial institution since the height of the financial crisis nearly 15 years ago.
The Silicon Valley bank collapsed Friday morning after an astonishing 48 hours, in what was the second-biggest failure of a financial institution in US history due to a bank run and lack of capital. California regulators shut down the technology lender and placed it under the control of the US Federal Deposit Insurance Corporation.
NEW YORK – Regulators raced Friday to seize the assets of one of Silicon Valley’s top banks, marking the biggest failure of a US financial institution since the height of the financial crisis nearly 15 years ago.
Silicon Valley Bank, the nation’s 16th largest bank, failed after depositors pulled money out this week amid fears about the bank’s health. It was the second largest bank failure in US history after the collapse of Washington Mutual in 2008.
The bank primarily serves technology workers and venture capital-backed companies, including some of the best-known brands in the industry.
Silicon valley bank CEO.
"This is a vanishingly small opportunity for startups," said Gary Tan, CEO of Y Combinator, the startup incubator that launched Airbnb, DoorDash and Dropbox.
"I've heard from literally hundreds of our founders asking for help on how to get rid of this. They ask: 'Should I lay off my employees?'"
There was little chance that the chaos would spread to the wider banking sector, as it did in the months before the Great Recession. The biggest banks — those most likely to collapse economically — have healthy balance sheets and plenty of capital.
Nearly half of the US technology and health care companies that went public last year after receiving initial funding from venture capital firms were Silicon Valley Bank clients, according to the bank’s website.
The bank boasts of its relationships with major technology companies such as Shopify, Zip Recruiter and one of the top venture capital firms, Andreessen Horowitz.
Tan estimated that about one-third of Y Combinator’s startups will be unable to pay payroll at some point over the next month if they can’t access their money.
Internet TV provider Roku was one of the victims of the banking collapse. It said in a regulatory filing on Friday that about 26% of its cash - $487 million - was deposited at Silicon Valley Bank.
Roku said its deposits with SVB are largely unsecured and it does not know "to what extent" it will be able to recover them.
Elon musk silicon valley bank -Elon Musk said to buy silicon Valley Bank after failing ?
Here what billionaire said.
Twitter boss and billionaire Elon Musk, known for his witty comments on the social media platform, recently said in a post that he is open to the idea of buying the collapsed Silicon Valley Bank (SVB).
Silicon Valley Bank (SVB), a four-year-old US lender and cornerstone of the tech startup scene, collapsed on Friday after 48 hours, making it the second biggest bank failure since the 2008 financial crisis. The bank primarily served technology workers and venture capital-backed companies, including some of the industry's best-known brands, the AP news agency said in a report.
His comment became increasingly viral on the Internet, on which different types of reactions are coming from the users. One user said: "What an opportunity. Otherwise 2-3 years to get bank charter. Just make sure you go through those toxic assets with a fine tooth comb!" While another user started a poll to see if Elon Musk should buy SVB. More than 5,000 users have already voted, with most positive answers.
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