BREAKING: Bank regulators are seizing the assets of Silicon Valley Bank, marking the largest bank failure since the 2008 financial crisis.
Catch up on the developing stories making headlines.The Federal Deposit Insurance Corporation seized the assets of Silicon Valley Bank on Friday, marking the largest bank failure since Washington Mutual during the height of the 2008 financial crisis.
Silicon Valley was heavily exposed to tech industry and there is little chance of contagion in the banking sector as a whole, with major banks holding sufficient capital to avoid a similar situation. Shares of SVB Financial Group, the parent company of Silicon Valley Bank, plummeted nearly 70% before trading was halted before the opening bell on the Nasdaq. The bank had announced plans to raise up to $1.75 billion in order to strengthen its capital position amid concerns about higher interest rates and the economy.
Silicon Valley bank is not a small bank, it’s the 16th largest bank in the country, holding $210 billion in assets. It acts as a major financial conduit for venture capital-backed companies, which have been hit hard in the past 18 months as the Federal Reserve has raised interest rates and made riskier tech assets less attractive to investors.
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