Home NEWS A Silicon Valley bank has collapsed, the biggest since the 2008 collapse

A Silicon Valley bank has collapsed, the biggest since the 2008 collapse

0
A Silicon Valley bank has collapsed, the biggest since the 2008 collapse

Headquartered in Santa Clara, the bank was ranked the 16th largest in the U.S. at the end of last year, with about $209 billion in assets.

The specifics of the  tech – focused bank’s sudden collapse are not yet entirely clear, but the Fed’s aggressive rate hikes last year, which worsened financial conditions in the startup space where the bank was a major player, may be the key. reason.

As it scrambled to raise capital to replace rapidly disappearing deposits, the bank lost $1.8 billion on Treasuries whose values ​​were destroyed by the Fed’s rate hikes.

LEAVE A REPLY

Please enter your comment!
Please enter your name here