Silicon Valley, the nation’s 16th largest bank, failed after depositors — mostly technology workers and venture capital-backed companies — hurried to withdraw money this week as anxiety over the bank’s balance sheet spread.
Internet TV provider Roku was among casualties of the bank collapse. It said in a regulatory filing Friday that about 26% of its cash — $487 million — was deposited at Silicon Valley Bank.
The failure arrived with incredible speed. Some industry analysts suggested Friday that the bank was still a good company and a wise investment. Meanwhile, Silicon Valley Bank executives were trying to raise capital and find additional investors. However, trading in the bank’s shares was halted before stock market’s opening bell due to extreme volatility.
In 2007, the biggest financial crisis since the Great Depression rippled across the globe after mortgage-backed securities tied to ill-advised housing loans collapsed in value. The panic on Wall Street led to the demise of Lehman Brothers, a firm founded in 1847. Because major banks had extensive exposure to one another, the crisis led to a cascading breakdown in the global financial system, putting millions out of work.
Conceived in 1983 by co-founders Bill Biggerstaff and Robert Medearis during a poker game, the bank leveraged its Silicon Valley roots to become a financial cornerstone in the tech industry.Article content
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Silicon Valley Bank spooks Silicon ValleySilicon Valley Bank, long one of the most popular financial institutions among tech and life sciences startups, saw its shares fall more than 60% on Thursday, wiping out a whopping $9.4 billion in market value.
Read more »
Column: The Silicon Valley Bank collapse is Silicon Valley's problem, not yours'Based on the information that has been made public, the bank unwisely put its eggs in one basket by taking deposits from an insular group of depositors: venture-funded startups.' Column by hiltzikm:
Read more »
Regulators shut down Silicon Valley Bank in the biggest bank collapse in yearsThe move came after growing concerns over a run at the lender — the 16th largest U.S. bank and a tech-startup favorite — that also led investors to dump shares of other bank stocks.
Read more »
Silicon Valley Bank Is Shut Down by Regulators in Biggest Bank Failure Since Global Financial CrisisSilicon Valley Bank shut down by regulators in biggest bank failure since global financial crisis more than a decade ago
Read more »
Silicon Valley Bank Closed by Regulators After Bank RunRegulators shut down tech lender Silicon Valley Bank (SVB) on Friday after a bank run. See potential bias and similarities in coverage from CNNBusiness, WSJ and nypost: SVB SiliconValleyBank
Read more »