The downfall of SVB and Signature Bank had implications for banking, investing and the economy. Here’s what to know about the Silicon Valley Bank collapse
Friday marked the second-biggest bank failure in U.S. history after Washington Mutual in 2008.
SVB’s clients included technology companies with deposit accounts, credit lines and callable loans, as well as company founders with individual accounts and mortgages. Venture capital firms also hold money with SVB to fund deals. On Friday, U.S. regulators shut down the bank and froze US$175-billion in deposits. The frenetic two-day run blindsided observers and stunned markets, wiping out more than US$100-billion in market value for U.S. banks.The Federal Deposit Insurance Corporation took control of Signature Bank on Sunday, two days after U.S. regulators shuttered Silicon Valley Bank.
“We are also announcing a similar systemic risk exception for Signature Bank, New York, New York, which was closed today by its state chartering authority,” the Treasury Department, Federal Reserve and FDIC said in a joint statement.In Canada, the Office of the Superintendent of Financial Institutions
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