Silicon Valley Bank undergoes an intervention and has closed operations

The intervention comes after the bank’s shares plunged 60% yesterday.

Silicon Valley Bank has just entered the intervention process and has been closed since Department of Financial Protection and Innovation of the state California.

The intervention comes after the bank’s shares plunged by 60% yesterday due to the announcement of a loan of 2.25 billion dollars to strengthen the institution’s liquidity.

This morning (10) the negotiations with the newspaper were suspended. Before the market opened, the bank’s shares had already fallen 60%.

The government’s entry into the bank comes about because it failed to find a buyer for the operations.

Yesterday afternoon, investors and startups from Brazil and the rest of the world rushed to withdraw the money from the bank. OR startups found that those who managed to withdraw funds before 5pm were able to make transfers. After this period, difficulties were encountered.

Silicon Valley Bank CEO Greg Becker has urged leading Silicon Valley venture capitalists to “remain calm” amid market concerns related to the bank. According to The Information, the executive said that “the calls started coming in and the panic started.” He added that the bank had ample liquidity to support customers, with one exception. “if everyone told themselves that the SVB has problems, it would be a challenge”.

About a month ago, SVB was named to Forbes’ list of America’s Best Banks for the fifth consecutive year and was named to the publication’s inaugural list of Financial All-Stars. Today, the New York Times reported that the Silicon Valley Bank became the largest bank to fail since the 2008 financial crisis.

Source: Terra

Rose

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