A US regulator has shut Silicon Valley Bank and appointed the Federal Deposit Insurance Corporation as the receiver.
US banking regulator closes SVB as depositors pull cash
The US Federal Deposit Insurance Corporation has seized the assets of Silicon Valley Bank, marking the largest bank failure in the country since Washington Mutual during the height of the 2008 financial crisis.
The bank failed after depositors – mostly technology workers and venture capital-backed companies – began withdrawing their money creating a run on the bank.
Silicon Valley was heavily exposed to the tech industry and there is little chance of contagion in the banking sector as there was in the months leading up to the recession more than a decade ago.
Major banks have sufficient capital to avoid a similar situation.