SANTA CLARA: United States regulators pulled the plug on Silicon Valley Bank (SVB) on Friday (Mar 10) in a spectacular move that sent global banking shares sputtering, as markets fretted over possible contagion from America's biggest banking failure since the 2008 financial crisis. US authorit
SANTA CLARA: United States regulators pulled the plug on Silicon Valley Bank on Friday in a spectacular move that sent global banking shares sputtering, as markets fretted over possible contagion from America's biggest banking failure since the 2008 financial crisis.
Its demise represents not only the largest bank failure since Washington Mutual in 2008, but also the second-largest failure ever for a retail bank in the US. In front of the SVB headquarters on a rainy day in Santa Clara, California, nervous customers spoke in small groups wondering how they could withdraw their money as news spread of the government seizure.
But on Wall Street on Friday, shares in heavyweights Bank of America, Wells Fargo and Citibank seesawed, with Yellen telling a congressional panel that she was"monitoring" a few banks. CNBC reported on Friday that SVB was in talks with potential buyers after attempts to ride out the crisis on its own failed.
Before the closure, trading in SVB itself was halted on Friday after the bank saw more than 60 per cent of its value wiped out, following the disclosure it had lost US$1.8 billion in securities sales in an effort to raise funds.
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