Silicon Valley Bank fails, shut down by California regulator
Notably, the FDIC did not announce a buyer of Silicon Valley’s assets, which is typically when there’s an orderly wind down of a bank. The FDIC also seized the bank’s assets in the middle of the business day, a sign of how dire the situation had become.was increasingly in question this week after the bank announced plans to raise up to US$1.75 billion in order to strengthen its capital position amid concerns about higher interest rates and the economy.
Venture capital-backed companies were being reportedly advised to pull at least two months’ worth of “burn” cash out of Silicon Valley Bank to cover their expenses. Typically VC-backed companies are not profitable and how quickly they use the cash they need to run their businesses — their so-called “burn rate” — is a typically important metric for investors.U.S.
Diversified banks like Bank of America and JPMorgan pulled out of an early slump due to data released Friday by the United States Labor Department, but regional banks, particularly those with heavy exposure to the tech industry, were in decline. Yet it has been a bruising week. Shares of major banks are down this week between seven per cent and 12 per cent.
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