Silicon Valley Bank

Dozens of young Indian startups backed by the likes of YC, Accel, Sequoia India, Lightspeed, SoftBank and Bessemer Venture Partners banked with Silicon Valley ...

The collapse of the Silicon Valley Bank, a key lender to US startups since the 1980s, has sent shockwaves in global markets. It is not only the largest bank ...

Customers are eligible to file a claim against Silicon Valley Bank for settlement of money owed for service or product provided. The financial body also said that cheques of the old bank would also be honoured. The collapse of the Silicon Valley Bank, a key lender to US startups since the 1980s, has sent shockwaves in global markets.

Silicon Valley Bank collapse became America's biggest banking failure since 2008. People are looking towards Elon Musk for rescue as he recently bought ...

The Federal Deposit Insurance Corporation was designated as the receiver. Silicon Valley Bank collapse became 2-3 years to get a banking charter otherwise. Silicon Valley Bank collapse Musk's remark comes after Min-Liang Tan, co-founder and CEO of American global gaming hardware manufacturer Razer, suggested Musk turn the failed bank into a digital bank. His comment quickly gained popularity on the internet, drawing a range of responses from users.

The US, and the technology sector which were among its biggest customers, face another Lehman Brothers moment with the failure of Silicon Valley Bank.

"A lot of observers were wondering about the debt piling up on credit cards or in the office real estate market. A start-up boss, he used the bank to pay his employees and is worried about them. In Paris, Société Générale lost 4.49 per cent, BNP Paribas 3.82 per cent and Crédit Agricole 2.48 per cent. agency responsible for guaranteeing deposits, the Federal Deposit Insurance Corporation (FDIC). Little known to the general public, SVB had specialised in financing start-ups and had become one of the largest banks in the US by asset size: at the end of 2022, it had $209 billion (€196 billion) in assets and about $175.4 billion (€164.5 billion) in deposits. US regulators rushed to seize the assets of Silicon Valley Bank (SVB) on Friday after a run on the bank, the largest failure of a financial institution since the height of the financial crisis more than a decade ago.

The crisis at SVB kicked off earlier this week when the startup-focused bank launched a share sale to shore up its balance sheet after selling a portfolio ...

MOST READ At the close of business on March 9, the bank had a negative cash balance of $958 million. Some founders moved their money from SVB to other firms, including Brex and First Republic. SVB, which has been incurring losses after its clients started pulling money out to meet their liquidity needs amid recession fears and challenging market conditions, announced on Wednesday it had suffered a tax loss of roughly $1.8 billion. O'Connor added that SVB’s business was going as usual till the US government changed its interest rates. It later invested heavily in bonds, which were being issued in a low-interest rate scenario. The bank offloaded securities to raise much-needed cash as it struggled with falling deposits. In 2021, during the funding boom, SVB amassed large deposits — $189 billion, which later peaked at a massive $198 billion. Silicon Valley Bank (SVB), which is known for lending funds to tech startups like Pinterest Inc, Shopify Inc., and CrowdStrike Holdings Inc, has kicked off a perfect storm in the market.

The tech industry is the biggest customer of the Silicon Valley Bank (SVB), with a large number of Indian start-ups, especially in the SaaS (software as a ...

SVB had received a massive volume of deposits during the 2020-2021 tech boom and invested the proceeds into long-term Treasury bonds while interest rates were low. Gokul Rajaram, a respected veteran of the technology space who is a board member in companies like Pinterest and Coinbase said on Twitter, “India-based founders don’t know who to turn to as an alternate to SVB. A number of high-profile venture capital funds like Peter Thiel’s Founders Fund had earlier advised their portfolio companies to pull money from SVB on Thursday when the bank’s shares tumbled more than 60 per cent, Bloomberg had reported. That is more than what US regulators – who shut the bank down – said would be insured by them, with the Federal Deposit Insurance Corporation (FDIC) asking companies with accounts containing more than $250,000 to contact a toll free number. In a press release, FDIC said that depositors will have access to their insured deposits – capped at $250,000 – by Monday (March 13). We have around $2 million in our SVB account and need that to create payroll,” a founder told

Startup-focused lender SVB Financial Group became the largest bank to fail since the 2008 financial crisis.

To fund the redemptions, SVB sold a $21 billion bond portfolio consisting mostly of U.S. The genesis of SVB's collapse lies in a rising interest rate environment. Federal Reserve and other central banks to fight inflation by ending the era of cheap money is exposing vulnerabilities in the market. lenders First Republic Bank and Western Alliance said on Friday their liquidity and deposits remained strong, aiming to calm investors as their shares fell. Specifics of the tech-focused bank's abrupt collapse were a jumble, but the Fed's aggressive interest rate hikes in the last year, which had crimped financial conditions in the start-up space in which it was a notable player, seemed front and center. Technology workers whose paychecks relied on the bank were also worried about getting their wages on Friday. The 2008 crash prompted tougher rules in the United States and beyond. The worries walloped the banking sector. While the FDIC hopes to put together such a merger by Monday to safeguard unsecured deposits, no deal is certain, the sources added. Roku said its deposits with SVB were largely uninsured, sending its shares down 10% in extended trading. These assets could attract competitors and private equity firms, the sources added. It's unclear if any buyer will step up to buy these assets without SVB Financial having filed for bankruptcy first.

Becker navigated the dot-com bubble and the 2008 financial crisis as a top executive at SVB, eventually becoming president and CEO in 2011.

In a BBC video from December, he advised job seekers to build a skill set around the innovation economy in fields like computer programming and project management. Prior to his role as president and CEO of SVB Financial Group, Becker played a key role in establishing SVB Capital, the investment arm of the company. When his manager left to work for SVB, Becker followed. Intriguingly, according to regulatory filings, Becker sold 12,451 shares of parent company SVB Financial Group for $3.6 million on February 27 under a pre-arranged trading plan. Just one day earlier, Becker had personally reassured clients that their money was safe with the bank. Greg Becker, the chief executive officer of Silicon Valley Bank (SVB), began his career at the startup-focused lender as a loan officer thirty years ago.

SVB UK has a limited UK presence and "no critical functions supporting the financial system," the bank said.

banks have lost over $100 billion in stock market value and European banks shed another $50 billion in value over the past two days, according to a Reuters calculation. "SVB UK has a limited presence in the UK and no critical functions supporting the financial system. regulators took over its parent company, SVB Financial Group, earlier in the day.

British arm of California-based lender applied for £1.8bn in liquidity as its parent company collapsed.

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US regulators on Friday shut down SVB and took control of its customer deposits in the largest failure of an American bank since 2008.

[Subscribe](https://economictimes.indiatimes.com/subscription?newslettertype=div_3125&email=2&utm_source=newsletter&utm_medium=email&utm_campaign=DailyTop5)to our daily newsletter for the latest and must-read tech news, delivered straight to your inbox. [US regulators on Friday shut down](https://economictimes.indiatimes.com/tech/technology/california-regulator-shuts-silicon-valley-bank/articleshow/98549716.cms)Silicon Valley Bank and took control of its customer deposits in the largest failure of an American bank since 2008. “To protect insured depositors, the FDIC created the Deposit Insurance National Bank of Santa Clara (DINB). The FDIC will sell the assets of SVB, while the DINB will maintain its normal business activities. While some are closely tracking the developments, others have started moving their deposits out from SVB. The bank also said it booked a massive after-tax loss of $1.8 billion on sales of these investments. [technology](https://economictimes.indiatimes.com/tech)and [startup news](https://economictimes.indiatimes.com/tech/startups)that matters. SVB is a Santa Clara, California-based lender that focusses on Silicon Valley and tech startups. [would be "strongly supportive" of the lender](https://economictimes.indiatimes.com/tech/technology/top-vcs-in-a-huddle-to-discuss-silicon-valley-bank-collapse-vow-to-be-supportive/articleshow/98557217.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst). [US billionaire investor Bill Ackman said](https://economictimes.indiatimes.com/tech/technology/silicon-valley-bank-crisis-investor-bill-ackman-bats-for-highly-dilutive-bailout-of-bank/articleshow/98538300.cms)that the US government should consider a "highly dilutive" bailout for the lender. [Indian investors and SaaS startups are rattled](https://economictimes.indiatimes.com/tech/technology/silicon-valley-bank-meltdown-puts-indian-saas-firms-on-alert/articleshow/98548931.cms)by the developments in the US. To which Musk replied: "I'm open to the idea".

Traders have been watching this week for signs of contagion in the financial sector from developments surrounding startup-focused Silicon Valley Bank and ...

cryptocurrency firm Circle has $3.3 billion of its $40 billion of USD Coin reserves at the collapsed lender Silicon Valley Bank, the company said in a tweet on Friday. Circle said in another tweet on Friday that it and USDC continue to operate normally while it waits to see how SVB's receivership will affect its depositors, while several crypto companies took to Twitter to deny any exposure to the collapsed SVB. cryptocurrency firm Circle said it has $3.3 billion of its $40 billion of USD Coin reserves at the collapsed lender Silicon Valley Bank.

LONDON, March 11 (Reuters) - By Elizabeth Howcroft and Rishabh Jaiswal. Stablecoin USD Coin (USDC) lost its dollar peg and slumped to an all-time low on ...

The largest, Tether, has a market cap of $72 billion, according to CoinGecko. USDC is the second-biggest stablecoin with a market cap of $37 billion. Stablecoin USD Coin (USDC) lost its dollar peg and slumped to an all-time low on Saturday after Circle, the U.S. bank failure since the 2008 financial crisis, roiling global markets and stranding billions of dollars belonging to companies and investors. USDC's price usually holds close to $1, making Saturday's drop unprecedented. It recovered slightly to trade around $0.90 by 1120 GMT.

It's safe to say, though, that none of the disaster scenarios envisaged the kind of financial implosion that struck this week at SVB Financial, the parent ...

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USD Coin, the second-largest stablecoin in the crypto sector fell from its dollar peg on Saturday, trading as low as 81.5 cents.

A net $2 billion (~R36.6 billion) of USDC was redeemed in the past 24 hours, according to blockchain research firm Nansen. Tether's Chief Technology Officer Paolo Ardoino said in a tweet that the largest stablecoin doesn't have exposure to SVB. The $60 billion (~R1 trillion) wipeout of that system intensified global regulatory scrutiny of stablecoins. But $3.3 billion (~R60 billion) of that roughly $40 billion stockpile is with Silicon Valley Bank, which has just become one of the largest US bank failures in recent history. Stablecoins like USDC are intended to hold a set value against another, highly liquid asset like the US dollar. USDC has a circulating supply of about 41 billion tokens and a market value of roughly $36 billion (~R660 billion), CoinGecko data shows. "It's driven by Circle's exposure at SVB plus Coinbase closing off its USDC convert function." Smaller stablecoins such as DAI and Pax Dollar also fell from their intended pegs, a sign of wider nervousness. Investors often park funds in stablecoins as they move between crypto trades. In that vacuum, USDC fell below $1, trading at about 90 cents as of 3:28 p.m. The second-largest stablecoin in the crypto sector fell from its dollar peg on Saturday, trading as low as 81.5 cents, hurt by the exposure of its issuer Circle Internet Financial Ltd., to the collapsed [crypto markets](https://www.news24.com/tags/topics/crypto) and is supposed to hold a constant $1 value, fully backed by reserves of cash and short-dated Treasuries.

DealBook unpacks what caused the biggest U.S. bank failure since the 2008 financial crisis — and what might come next.

Here’s an interesting discussion from the Vulture podcast “Into It” about why the Oscars [aren’t rewarding blockbusters](https://www.vulture.com/2023/03/will-the-oscars-reward-blockbuster-movies.html). (The Economist) [“M*A*S*H” episode](https://clear-vivid-with-alan-alda.simplecast.com/episodes/alan-chats-with-the-bots)for Alan Alda and Mike Farrell, stars of the 1970s TV comedy, to read. [rethinking the ceremony](https://www.nytimes.com/2023/03/09/business/media/academy-awards-broadcast.html)to hold on to viewers — and preserve its own future. Gulden didn’t have to travel far; Puma and Adidas are based in the same Bavarian city, Herzogenaurach. [an Italian highway](https://www.instagram.com/p/CRlFry4LQls/), A24 had the same ambitions as predecessors like Miramax: Produce critically lauded hits. The rub is what possible suitors think about spending on a studio whose movies have never been financial home runs, in an age of increasingly tight budgets. There will be a detailed post-mortem of the bank’s failure in the coming weeks and months. The bank’s management — with the help of Goldman Sachs, its adviser — chose to raise new equity from the venture capital firm General Atlantic and also to sell a convertible bond to the public. The Luxembourg-based firm spent billions to acquire stakes in the commercial arm of La Liga, Spain’s leading soccer league; the Indian Premier League cricket competition; and the Six Nations rugby tournament. That left time for investors — and, more important, clients — to start scratching their heads and sow doubt about the firm, leading to an exodus of deposits. [sell $21 billion of bonds at a $1.8 billion loss](https://www.reuters.com/business/finance/what-caused-silicon-valley-banks-failure-2023-03-10/), in large part, it appears, because many of those bonds were yielding an average of only 1.79 percent at a time when interest rates had risen drastically and the bank was starting to look like an underperformer relative to its peers.

CEO Greg Becker personally led the bank's half-million-dollar push to reduce scrutiny of his institution – and lawmakers obliged.

Becker [left the board](https://www.investing.com/news/stock-market-news/ceo-of-failed-silicon-valley-bank-no-longer-a-director-at-sf-fed-3027959?ref=the-lever) on Friday. [wrote](https://www.federalreserve.gov/SECRS/2019/August/20190806/R-1658/R-1658_062119_134209_447374886406_1.pdf?ref=the-lever) in a comment on the Federal Reserve’s proposal. [appeared before a Senate panel](https://www.govinfo.gov/content/pkg/CHRG-114shrg94375/pdf/CHRG-114shrg94375.pdf?ref=the-lever) to push legislators to exempt more banks – including his own – from new regulations passed in the wake of the 2008 financial crisis. [Senate](https://www.senate.gov/legislative/LIS/roll_call_votes/vote1152/vote_115_2_00054.htm?ref=the-lever) by 50 Republicans and 17 Democrats, including the Democratic Virginia Senator Mark Warner, for whom Becker held a fundraiser at his Menlo Park, California, home in 2016, according to an [invitation](http://politicalpartytime.org/party/41385/?ref=the-lever) obtained by the Sunlight Foundation and OpenSecrets. Recall that the smallest among this class of banks is over twice the size of the $50bn banks that automatically required enhanced prudential regulation under the Dodd-Frank Act as originally enacted.” “Given the low risk profile of our activities and business model, such a result would stifle our ability to provide credit to our clients without any meaningful corresponding reduction in risk.” [elected](https://www.frbsf.org/our-district/press/news-releases/2019/leadership-and-membership-announcements-board-of-directors/?ref=the-lever) to serve on the board of directors at the Federal Reserve Bank of San Francisco. The bank’s political action committee also donated a total of $10,000 to Warner’s campaigns in the [2016](https://www.opensecrets.org/political-action-committees-pacs/silicon-valley-bank/C00333658/candidate-recipients/2016?ref=the-lever) and [2018](https://www.opensecrets.org/political-action-committees-pacs/silicon-valley-bank/C00333658/candidate-recipients/2018?ref=the-lever) election cycles. The bank [federal](https://lda.senate.gov/filings/public/filing/40f1aec7-9dbf-46da-a20e-2ce2f5af80cc/print/?ref=the-lever) [disclosure](https://lda.senate.gov/filings/public/filing/1a82c199-21a1-447c-98ca-78decd6cc97e/print/?ref=the-lever) [records](https://lda.senate.gov/filings/public/filing/e5be3075-8267-42a0-8aa2-aa1725d4e7d4/print/?ref=the-lever) [show](https://lda.senate.gov/filings/public/filing/276fe661-9582-4f96-995d-151d133db5e2/print/?ref=the-lever) the bank was lobbying lawmakers on “financial regulatory reform” and the Systemic Risk Designation Improvement Act of 2015 – a bill that was the precursor to [legislation](https://www.congress.gov/bill/115th-congress/senate-bill/2155/text?ref=the-lever) ultimately signed by President Donald Trump that increased the regulatory threshold for stronger stress tests to $250bn. [published](https://www.levernews.com/svb-chief-pressed-lawmakers-to-weaken-bank-risk-regs/) in the Lever [reportedly](https://fortune.com/2023/03/10/silicon-valley-bank-chief-risk-officer/?ref=the-lever) did not have a chief risk officer in the months leading up to the collapse, while more than [90% of its deposits](https://twitter.com/business/status/1634211584657571843?s=20&ref=the-lever) were not insured.

The announcement from Circle overnight on Friday prompted the company's USDC crypto token to lose its peg to the dollar. US exchange Coinbase said it was ...

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Here's what to know about why the US financial institution catering to tech startups and venture capital failed, who was affected most, and how it may or ...

Silicon Valley Bank was large but had a unique existence by servicing nearly exclusively the technology world and VC-backed companies. Bank regulators had no other choice but to seize Silicon Valley Bank's assets to protect the assets and deposits still remaining at the bank. That required selling typically safe bonds at a loss and those losses added up to the point that Silicon Valley Bank became effectively insolvent.

Stablecoin USD Coin (USDC) lost its dollar peg and slumped to an all-time low on Saturday after Circle, the US firm behind the coin, revealed some of the ...

The largest, Tether, has a market cap of $72 billion, according to CoinGecko. USDC is the second-biggest stablecoin with a market cap of $37 billion. USDC’s price usually holds close to $1, making Saturday’s drop unprecedented. It recovered slightly to trade around $0.90. [tweet](https://twitter.com/circle/status/1634341007306248199) Friday it and USDC “continue to operate normally” while the firm waits for clarity on what will happen to Silicon Valley Bank depositors. [collapsed lender Silicon Valley Bank](http://www.cnn.com/2023/03/11/business/svb-collapse-roundup-takeaways/index.html), the company said in a [tweet](https://twitter.com/circle/status/1634391505988206592) Friday.

The implosion of the Silicon Valley bank led to finger-pointing, as executives and investors jumped on the crisis for their own messaging.

Silicon Valley Bank appears to have had a relatively small footprint in the crypto industry. “There’s no crypto regulator insuring accounts for $250,000,” said Danny Moses, an investor at Moses Ventures who is known for his role in predicting the 2008 crisis in “The Big Short.” The fact that the F.D.I.C. “If this was an unregulated crypto bank, then the money could just disappear,” Mr. It became insolvent after investors and depositors caused a run on its holdings, the order said. The news set off fear in the tech industry, as start-ups rushed to get their money out. In November, FTX, the crypto exchange run by A so-called stablecoin designed to maintain a constant value of $1 suddenly dipped in price, sending shudders through the market. But crypto executives and investors — who have endured a year of near-constant upheaval — seized on the moment to preach and scold. And the finger-pointing went in both directions. [said](https://twitter.com/jaredgrey/status/1634341626121187330). Their vision of an alternate financial system, unmoored from big banks and other gatekeepers, was [better](https://twitter.com/ErikVoorhees/status/1634011983853895681).

Silicon Valley Bank has joined the cemetery of failed banks due to its self-inflicted wounds. No amount of finger pointing will absolve CEO Greg Becker, ...

According to SVB’s [10-K](https://s201.q4cdn.com/589201576/files/doc_financials/2022/q4/f36fc4d7-9459-41d7-9e3d-2c468971b386.pdf), “As of December 31, 2022, and December 31, 2021, the amount of estimated uninsured deposits in U.S. Thanks to all those politicians and bank lobbyists who fought hard to lower risk management requirements for banks under $250 billion assets, SVB was not required to disclose how much it had in high quality liquid assets to help it cover net cash outflows in a period of stress. Significant higher growth in assets is also a good time to examine whether a bank’s technology is up to the task of taking in significant amounts of data to price assets and to measure their credit, market, and liquidity risks. He had all of 2022 to see up close and personal all the funding and liquidity problems that his company was having. Such a rapid and large rise in deposits should always make risk managers test what would happen to the bank’s liquidity when depositors decided to leave as quickly as they came in. Its high levels of deposits from traditionally riskier companies meant that if any had liquidity problems there was always the risk that they could come rapidly en masse to withdraw their deposits. What more of a signal does a bank need to conduct interest rate sensitivity analysis and stress tests on their bond holdings? They repeatedly told us that they were bankers to technology, start-up companies, and venture capital firms. Anyone who does not take interest rate risk sensitivity analysis and stress tests seriously as part of a Gap Analysis does not belong in banking. From a credit perspective, SVB’s loans and bonds were of a good credit quality; their data showed a low probability of default. Loans alone grew almost 114% from 2019 to 2020 and then almost 30% from 2020 to 2021. Yet, even looking at aggregated data about SVB, a number of signs would have told investors, lenders, and credit analysts that SVB had problems.

Voices from tech and finance are increasingly calling for the federal government to push another bank to take over the failed Silicon Valley Bank.

Reassurances from the bank's executives were not enough to stop a run, and depositors withdrew more than $42 billion by the [end of the day Thursday](https://dfpi.ca.gov/wp-content/uploads/sites/337/2023/03/DFPI-Orders-Silicon-Valley-Bank-03102023.pdf), setting up the second-largest bank failure in U.S. [argued](https://mobile.twitter.com/Scaramucci/status/1634520661803630592), "It isn't a political decision to bailout SVB. [$2.25 billion](https://www.cnbc.com/2023/03/10/silicon-valley-bank-is-shut-down-by-regulators-fdic-to-protect-insured-deposits.html) to shore up its balance sheet, and that it had sold all its available-for-sale bonds at a $1.8 billion loss. [lengthy tweet](https://twitter.com/BillAckman/status/1634564398919368704), writing, "The gov't has about 48 hours to fix a-soon-to-be-irreversible mistake. AND make the too big to fail problem way worse." But the firm itself faced cashflow problems this year as startup financing dried up and its own assets were locked down in long-term bonds. [wrote](https://twitter.com/ericvishria/status/1634414149882232832), "If SVB depositors aren't made whole, then corporate boards will have to insist their companies use two or more of the BIG four banks exclusively. By allowing [@SVB_Financial](https://twitter.com/SVB_Financial) to fail without protecting all depositors, the world has woken up to what an uninsured deposit is — an unsecured illiquid claim on a failed bank. Do this before Monday open or there will be contagion and the crisis will spread." These banks are not deemed "too big to fail" and do not have to undergo regular stress tests or other safety valve measures passed in the wake of the 2008 financial crisis. Many of these depositors are startups, and many are concerned that they will not be able to make payroll this month, which in turn could spark a wide wave of failures and layoffs in the tech industry. [writing on Twitter](https://twitter.com/DavidSacks/status/1634292056821764099), "Where is Powell?

What can the collapse of Silicon Valley Bank teach us about the tech industry? On one level, not much. It's true that S.V.B., as tech insiders called it, ...

was a small bank by Wall Street standards (it was the 16th-largest bank in the country, with around $200 billion in assets as of January), it occupied a privileged place in the tech community. Relationships like those are valuable, and the most likely scenario here is that in the near future, a big Wall Street bank will acquire Silicon Valley Bank out of receivership. They’re start-up founders and investors, the kinds of people who scrutinize banks’ securities filings, who pay close attention to risk and volatility and who (most importantly) talk to each other on the internet all day. If a big bank acquires S.V.B., will it be as friendly to start-ups as S.V.B.? Are there other banks with ties to the tech industry that are vulnerable to interest-rate risk, the way S.V.B. In this case, S.V.B.’s demise seems to have been hastened by the clubby, A worse scenario — one in which no buyer emerges, the bank’s customers have to wait weeks or months to access their money and the entire start-up ecosystem collapses because many cannot make payroll — could be catastrophic. It’s true that S.V.B., as tech insiders called it, was a Silicon Valley institution, and that it counted many of the tech industry’s best-known start-ups and investment firms as its clients. Venture capital investors got spooked, and [told their portfolio start-ups](https://www.bloomberg.com/news/articles/2023-03-09/founders-fund-advises-companies-to-withdraw-money-from-svb) to withdraw any money they had sitting at S.V.B. needed to sell some of its bonds at a loss and seek fresh capital to meet its obligations. It’s also true that the bank’s failure will have ripple effects throughout the tech sector in the short term, as companies that kept their money there [badly](https://twitter.com/lulumeservey/status/1634232322693144576)) what had happened, some of those customers got worried that the bank was in trouble.

SACRAMENTO — Governor Gavin Newsom today issued the following statement in response to the appointment of the Federal Deposit Insurance Corporation (FDIC) ...

The stablecoin fell as low as $0.87 as Circle broke the news that its reserves were at the collapsed lender.

The largest, Tether, has a market cap of $72bn, according to CoinGecko. It abruptly collapsed after failing to raise money to meet withdrawal demand after saying it had sold about $21bn of securities from its portfolio, resulting in a $1.8bn loss for the first quarter. USDC is the second-biggest stablecoin with a market cap of $37bn . USDC’s price usually holds close to $1, making Saturday’s drop unprecedented. But the coin broke its 1:1 dollar peg and fell as low as $0.87 on Saturday morning. It was later reported that SVB did not have a chief risk officer in place in the months leading up to the collapse, while more than 90% of its more than $212bn in deposits were not insured.

Musk is watching the Silicon Valley Bank failure with interest as he works to enable payments on Twitter.

[planning to build his own town](https://www.wsj.com/articles/elon-musk-texas-town-52386513) along the Colorado River outside of Austin, Texas. [tweeted](https://twitter.com/realMeetKevin/status/1634377161195896832https://twitter.com/realMeetKevin/status/1634377161195896832) Kevin Paffrath, CEO of HouseHack, a real-estate and A.I. China’s WeChat offers an example of such an app, featuring payments [in addition to](https://fortune.com/2022/10/15/elon-musk-twitter-everything-app-x-wechat-america-china/) messaging, streaming, and video chats, among much else. According to the Wall Street Journal, Musk is Musk sold billions worth of Tesla stock to help finance his takeover of Twitter and has been preoccupied with reshaping the platform. Tesla needs and deserves to have working full time CEO.” No thanks!” [tweeted](https://twitter.com/elonmusk/status/1577428272056389633https://twitter.com/elonmusk/status/1577428272056389633) earlier that month. “2-3 years to get a banking charter otherwise. Just make sure you go through those toxic assets with a fine-tooth comb.” [tweeted Friday](https://twitter.com/mpawlo/status/1634282873665605643). [replied](https://twitter.com/elonmusk/status/1634374859043270678), “I’m open to the idea.”

In this edition of Week in Review, we cover the crises at Silicon Valley Bank, Apple's new classical music streaming service and more.

From winemakers in California to startups across the Atlantic Ocean, companies are scrambling to figure out how to manage their finances after their bank ...

“If the government allows people to take at least half of the money they have in Silicon Valley Bank next week, I think everything will be fine,” Varsavsky said Saturday. Co-founder David Murray credits an email from one of Confirm’s venture capital investors, which urged the company to withdraw its funds “immediately,” citing signs of a run on the bank. “And so we all did that, hence the bank run.” “They really understand the wine business,” Hirsch said. The U.S. That could force him into a decision about whether to begin furloughing employees until the mess is cleaned up. Regulators are trying to find a buyer for the bank in hopes customers with more than that can be made whole. customers with less than $250,000 in the bank can count on insurance provided by the Federal Deposit Insurance Corp. [$3.3 billion](https://twitter.com/circle/status/1634391505988206592?cxt=HHwWgIC-pcqaw64tAAAA) of the roughly $40 billion in reserves for its USDC coin at SVB. It’s not just startups feeling the pain. He cited “concern and panic.” The meltdown means distress not only for businesses but also for all their workers whose paychecks may get tied up in the chaos.

But what brought Silicon Valley Bank down wasn't lending to risky startups, or gambling on sketchy crypto coins, or some other ill-considered tech scheme.

The big bank will assume Silicon Valley Bank’s assets and liabilities and make its depositors whole, and nobody will suffer catastrophic losses. In this case, Silicon Valley Bank’s demise seems to have been hastened by the clubby, herd-following nature of the industry it served. Relationships like those are valuable, and the most likely scenario here is that in the near future, a big Wall Street bank will acquire Silicon Valley Bank out of receivership. This year, as tech investment slowed and startups pulled cash out of the bank to pay their expenses, Silicon Valley Bank needed to sell some of its bonds at a loss and seek fresh capital to meet its obligations. First, while Silicon Valley Bank was small by Wall Street standards (it was the 16th-largest bank in the country, with around $200 billion in assets as of January), it occupied a privileged place in the tech community. It’s true that SVB, as tech insiders called it, was a Silicon Valley institution, and that it counted many of the tech industry’s best-known startups and investment firms as its clients.

SVB will reopen on Monday for insured depositors under the newly formed Deposit Insurance National Bank of Santa Clara, but it is not yet clear whether or when ...

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The financial institution best known for its relationships with high-flying world technology startups and venture capital, Silicon Valley Bank, experienced.

Typically bank regulators look for a stronger bank to take on the assets of a failing bank, but in this case, another bank hasn’t stepped forward. It did a lot of work with the particular part of the economy that was hit hard in the past year. However the vast majority of Silicon Valley Bank’s deposits were uninsured, a unique characteristic of the bank due to its customers being largely startups and wealthy tech workers. At the moment, all of that money can’t be accessed and likely will have to be released in an orderly process. That required selling typically safe bonds at a loss, and those losses added up to the point that Silicon Valley Bank became effectively insolvent. Bank regulators had no other choice but to seize Silicon Valley The most immediate problem is Silicon Valley Bank’s large deposits. Two, there’s no buyer of Silicon Valley Bank. But Silicon Valley’s customers were largely startups and other tech-centric companies that started becoming more needy for cash over the past year. These investments are typically safe, but the value of those investments fell because they paid lower interest rates than what a comparable bond would pay if issued in today’s higher interest rate environment. Because Silicon Valley customers were largely businesses and the wealthy, they likely were more fearful of a bank failure since their deposits were over $250,000, which is the government-imposed limit on deposit insurance. So Silicon Valley customers started withdrawing their deposits.