Another bank crisis leads to massive damagw- SVB crisis
US’s Silicon Valley Bank closed: Shares fell 60% due to continuous losses and lack of funding, second major case of bank sinking in American history
America’s Silicon Valley Bank was closed on Friday. Now the Federal Deposit Insurance Corporation will take it over.
America’s 16th largest bank – Silicon Valley Bank has been ordered to be closed by the regulators. California’s Department of Financial Protection and Innovation has issued this order. Shares of the bank’s parent company SVB Financial Group fell by nearly 60% on 9 March. After this it was stopped for trading. This is the biggest failure in US history since the 2008 financial crisis.
According to Reuters, US banks have lost $ 100 billion in the stock market in the last 2 days due to the fall in SVB’s shares. At the same time, European banks have suffered a loss of 50 billion dollars. The Federal Deposit Insurance Corporation (FDIC) announced on Friday a Silicon Valley bank takeover. Along with this, he has also been given the responsibility of keeping the money of the customers safe. Silicon Bank will now open on March 13, after which all insured depositors will have the freedom to withdraw their deposits.
After the collapse of Silicon Valley Bank, many customers were seen outside the bank to withdraw their money.
The Federal Deposit Insurance Corporation (FDIC) announced on Friday a Silicon Valley bank takeover
The closure of the bank will also affect many Indian start-ups. SVB has invested in around 21 startups in India.
