Image Source: Pexels
The second-biggest bank failure in U.S. history after a run on deposits doomed the tech-focused lender’s plans to raise fresh capital. The FDIC just took control. The bank was the 16th largest in the U.S., with some $209 billion in assets as of Dec. 31.
Silicon Valley Bank has been around since 1983. Primarily works with VC-backed companies - the banking partner for nearly half of U.S. venture-backed technology and healthcare companies that listed on stock markets in 2022.
So it was four main things
1. The fed raising rates blew out their holdings - but their holdings were sort of risky
2. startups stopped depositing because VC funding dried up
3. new investment also stopped bc VC funding dried up
4. CEO made stuff worse + VCs started screaming
Video Length: 00:09:17
More By This Author:
Labor Market Vs InflationWhy The Data Makes No Sense
Rebalancing The Economy: An Interview With Mary Daly
Comments
Log in or sign up to join the conversation.