SVB, a 40-year-old bank, collapsed earlier this week following a $42 billion bank run. The withdrawal rush occurred shortly after SVB Financial Group announced on Wednesday its intentions to sell $2.24 billion in new shares in an attempt to compensate for having sold $21 billion of its portfolio’s securities at a $1.8 billion loss. The news spooked high-profile venture capitalists, which prompted them to order their portfolio businesses to pull their money out of the bank, kickstarting a bank run. On March 10, just two days after the bank run began, the Federal Deposit Insurance Corporation (FDIC) seized SVB.
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