Regulators Shut Down Major Tech Bank After Run On Savings | Eastern North Carolina Now

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.

    Publisher's Note: This post appears here courtesy of the The Daily Wire. The author of this post is Ben Zeisloft.

    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 publicly traded 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 release from the government-backed firm, while uninsured depositors can expect an advance dividend in the next week.

    "At the time of closing, the amount of deposits in excess of the insurance limits was undetermined," the entity said. "The amount of uninsured deposits will be determined once the FDIC obtains additional information from the bank and customers."

    The implosion of SVB would mark the largest bank failure since Washington Mutual collapsed in late 2008, according to Axios.

    Startups have been especially pressed for funds amid the macroeconomic turmoil that has marked the past several months, introducing additional financial pressures for the company. SVB Financial Group CEO Gregory Becker previously said in a letter to investors that "client cash burn has remained elevated and increased further in February, resulting in lower deposits than forecasted," according to a report from Reuters.

    Shares for SVB declined more than 60% this week before authorities halted trading for the company's stock on Friday morning. Shares for First Republic Bank have also declined more than 23% this week, while shares for JPMorgan Chase and Bank of America declined 6% and 10% respectively as investors worry about contagion in the broader financial sector.

    SVB told multiple clients on Thursday that wire transfers could be delayed, while the company's customer support services were largely unavailable, according to a report from The Information. One founder was told by a customer support agent that "systems are down" and "wires are backed up," although others were able to withdraw funds.

    SVB maintains some $209 billion in consolidated assets, according to data from the Federal Reserve. Venture capital firms such Founders Fund, Coatue Management, Union Square Ventures, and Founders Collective exhorted portfolio companies to remove their assets, according to a report from Bloomberg, while Sequoia Capital reiterated its diversification policy.

    Becker told clients to "stay calm" during a brief call with investors on Thursday afternoon.

    Pershing Square Capital Management CEO Bill Ackman had said on Thursday that the federal government should consider offering a bailout package to SVB. He asserted that the failure of the company could "destroy an important long-term driver of the economy" and suggested that "the dominoes" may "continue to fall" if other banks face sudden demand for withdrawals.

    The administrations of former President George W. Bush and former President Barack Obama previously introduced government bailouts for commercial and investment banks during the Great Recession, during which financial institutions were overexposed to subprime mortgages.
It has been far too many years since the Woke theology interlaced its canons within the fabric of the Indoctrination Realm, so it is nigh time to ask: Does this Representative Republic continue, as a functioning society of a self-governed people, by contending with the unusual, self absorbed dictates of the Woke, and their vast array of Victimhood scenarios?
  Yes, the Religion of Woke must continue; there are so many groups of underprivileged, underserved, a direct result of unrelenting Inequity; they deserve everything.
  No; the Woke fools must be toppled from their self-anointed pedestal; a functioning society of a good Constitutional people cannot withstand this level of "existential" favoritism as it exists now.
  I just observe; with this thoughtful observation: What will happen "when the Vikings are breeching our walls;" how do the Woke react?
845 total vote(s)     What's your Opinion?

Go Back

Leave a Guest Comment

Your Name or Alias
Your Email Address ( your email address will not be published)
Enter Your Comment ( no code or urls allowed, text only please )

House Votes 419-0 To Declassify All Intel On COVID Origins Daily Wire, News Services, Guest Editorial, Editorials, Government, Op-Ed & Politics, State and Federal As Any Good Communist Does, Kaepernick Throws His Parents Under The Bus


Latest State and Federal

Republican congressman Byron Donalds said it would be a “great honor” if former President Donald Trump were to ask him to be his running-mate for 2024, saying the ultimate goal is for Trump to win and he’ll do whatever he’s asked to help him do that.
Voters in Arizona will have the opportunity to enact broad border security measures in November as the state faces a flood of illegal immigration after the Republican-led state legislature passed a resolution that will put the measures on the general election ballot.
The former White House physician for Presidents Barack Obama and Donald Trump says that a new report this week about how President Joe Biden is struggling to function behind closed doors represents a serious threat to the U.S.
The Tikva Forum for Families of Hostages, an Israeli group created to represent the families of those taken during Hamas’ October 7 terrorist attack, urged President Joe Biden to stop interfering with Israel’s campaign to destroy the terrorist group.
After saying the six-foot social distancing guideline during the COVID-19 pandemic “sort of just appeared,” Dr. Anthony Fauci on Monday testified that his statement had been “distorted” and that it “actually” came from the Centers for Disease Control and Prevention (CDC).
The state Supreme Court has agreed to hear one of two pending cases involving North Carolina bar owners challenging Gov. Roy Cooper's COVID-related shutdowns in 2020.


The Biden administration canceled over 350,000 asylum cases, allowing migrants to stay in the United States indefinitely in a move that experts called “mass amnesty.”
Former White House medical advisor Anthony Fauci changed his view of COVID vaccines from 2021 to 2024, clips show.
The Department of Justice announced on Friday that 75-year-old Paula Paulette Harlow was sentenced to two years in prison for violating the Freedom of Access to Clinic Entrances Act by taking part in a “conspiracy” to block pregnant women from entering an abortion clinic in Washington, D.C.
A GOP-led House panel is seeking access to Dr. Anthoni Fauci‘s personal email accounts and cell phone records as part of an investigation into the origins of COVID-19.
Former President Donald Trump is considering having Tesla CEO Elon Musk serve in an advisory role if Trump reclaims the White House, according to a new report.


On Tuesday, special counsel Jack Smith‘s bid for a gag order against former President Donald Trump in his classified documents case got rejected by the presiding federal judge in Florida.


Back to Top