Silicon Valley Bank collapsed after customers sought to withdraw funds due to the company’s lackluster balance sheet and overall difficulties in the startup sector.
SVB announced a $1.75 billion share sale on Wednesday after the company suffered heavy losses from the liquidation of a $21 billion bond portfolio, raising concerns among venture capital firms and startups with ties to the company about the safety of their assets. SVB, the 16th largest bank in the United States and the largest in Silicon Valley, lends to nearly half of venture-backed technology and healthcare companies.
The Federal Deposit Insurance Corporation said on Friday that SVB was closed by the California Department of Financial Protection and Innovation. Insured depositors will have access to funds by Monday morning, according to a press
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