Silicon Valley Bank, SVB, Crashed This Morning
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Silicon Valley Bank (SVB) crashed this morning. Silicon Valley Bank has been shuttered by California regulators, who have appointed a receiver (more here), Zero Hedge reports.
All insured depositors will have full access to their insured deposits no later than Monday morning, March 13, 2023. The FDIC will pay uninsured depositors an advance dividend within the next week. Uninsured depositors will receive a receivership certificate for the remaining amount of their uninsured funds. As the FDIC sells the assets of Silicon Valley Bank, future dividend payments may be made to uninsured depositors.
It is the largest bank to close its doors since 2008 and the 16th biggest in the country. Banking and legal experts say SVB went heavy on short-term bonds that collapsed in value as interest rates continued to rise. Unfortunately, SVB specializes in tech deals that have become nonexistent as the fed pushes forward with additional rate hikes.
It’s not an omen, according to Erick Erickson; the big banks are still fine. Others say it’s spreading to the broader banking system.
Perhaps the Big Banks taking over is a bad thing?
ALERT 🚨 Silicon Valley Bank (SVB) is the second largest bank failure in American history pic.twitter.com/dy9fkkO6y7
— Insider Paper (@TheInsiderPaper) March 10, 2023