SVB Financial Group: Largest bank failure since 2008 crisis
Date
3/12/2023 8:59:15 AM
(MENAFN) On Friday, SVB Financial Group, a lender that focused on startups, suffered the largest bank failure since the 2008 financial crisis. This sudden collapse caused a ripple effect across global markets, stranding billions of dollars belonging to companies and investors.
As a result, California banking regulators closed the bank, also known as Silicon Valley Bank, and appointed the Federal Deposit Insurance Corporation (FDIC) as the receiver for its assets. Although the main office and all branches of the bank are set to reopen on March 13, the fate of the uninsured deposits, which accounted for 89 percent of the bank's USD175 billion in deposits as of the end of 2022, remains to be determined.
This uncertainty has left companies such as Roblox Corp. and Roku Inc., which had hundreds of millions of dollars deposited at the bank, in limbo. According to the FDIC, Roku's deposits with SVB were largely uninsured, causing the company's shares to drop by 10% in extended trading.
MENAFN12032023000045014146ID1105756443
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.