Former executives from Silicon Valley Bank and Signature Bank told members of the Senate on Tuesday that their institutions failed as a result of panic from depositors.
The implosion of Silicon Valley Bank, where the vast majority of account balances exceeded the $250,000 threshold backed by the Federal Deposit Insurance Corporation (FDIC), prompted the government-backed company to secure insured and uninsured accounts in early March to prevent additional bank runs. Signature Bank nevertheless collapsed days later, while other regional financial institutions continued to languish, and First Republic Bank, a third medium-sized institution, was sold earlier this month in a deal brokered by regulators.
Former Silicon Valley Bank CEO Greg Becker said in remarks before the Senate Banking Committee that the firm was “adequately capitalized” before the sale
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