Here's how the second-biggest bank collapse in U.S. history happened in just 48 hours
Publishing timestamp: 2023-03-10 20:38:04
Summary
Silicon Valley Bank (SVB) faced a bank run and was seized by regulators after customers withdrew $42 billion of deposits in just two days. The bank had surprised investors with news that it needed to raise $2.25 billion to shore up its balance sheet, which led to panic among the venture capital community that it had served and nurtured. The sudden need for fresh capital, coming on the heels of the collapse of crypto-focused Silvergate Bank, sparked another wave of deposit withdrawals. The episode is the latest fallout from the Federal Reserve's actions to stem inflation with its most aggressive rate-hiking campaign in four decades. The ramifications could be far-reaching, with concerns that startups may be unable to pay employees in the coming days, venture investors may struggle to raise funds, and the already-battered sector could face deeper malaise.
Sentiment: NEGATIVE
Keywords: breaking news: investing, breakingnewsglobal, investment strategy, svb financial group, wells fargo & co, banks, breaking news: markets, business news,
Source: https://www.cnbc.com/2023/03/10/silicon-valley-bank-collapse-how-it-happened.html