Silicon Valley Bank collapsed Friday morning after a stunning 48 hours in which a bank run and a capital crisis led to the second-largest failure of a financial institution in US history. California regulators closed down the tech lender and put it under the control of the US Federal Deposit Insurance Corporation. The FDIC is acting as a receiver, which typically means it will liquidate the bank’s assets to pay back its customers, including depositors and creditors. The FDIC, an independent government agency that insures bank deposits and oversees financial institutions, said all insured depositors will have full access to their insured deposits by no later than Monday morning. It said it would pay uninsured depositors an “advance dividend within the next week.” CNN's Matt Egan reports. #CNN #MattEgan #cnnnewsroom...(read more)
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The collapse of Silicon Valley Bank (SVB) has become the second-largest bank failure in US history. This news comes as a surprise to many financial analysts and investors, who had long considered SVB to be a stable and reliable banking institution. SVB, which was founded in 1983, was known for its focus on serving the technology and innovation sectors. Over the years, it had become one of the most respected banks in the country, with a reputation for excellent customer service and strong financial performance. However, in recent years, SVB had faced mounting challenges. The bank had been struggling to keep up with the rapid pace of technological change, and had been losing customers to newer, more nimble startups. At the same time, SVB had also been facing increased regulatory scrutiny, as regulators had become concerned about the bank's risk management practices and exposure to high-risk loans. Despite these challenges, many investors continued to have faith in SVB, and the bank's stock had remained relatively stable up until its collapse. However, on the morning of October 20, 2021, news broke that SVB had been placed into receivership by federal regulators. The bank's collapse is now second only to the failure of Washington Mutual in 2008, which was the largest bank failure in US history. The collapse of SVB has sent shockwaves through the financial industry, as investors begin to reassess their faith in other small and mid-sized banks. Many are now concerned that SVB's collapse could be a sign of broader problems within the banking sector, and that other banks may also be vulnerable to similar risks. At the same time, the collapse of SVB has also raised questions about the federal government's role in regulating and overseeing banks. Some critics have argued that regulators should have acted sooner to address the bank's mounting problems, and that more needs to be done to prevent similar collapses from happening in the future. Ultimately, the collapse of SVB is a cautionary tale about the risks and challenges facing the banking industry in the 21st century. As technology and innovation continue to transform the way we do business, banks must adapt and evolve to stay ahead of the curve. And as regulators work to ensure the safety and stability of the financial system, they must also remain vigilant to the ever-changing risks and challenges that lie ahead. https://inflationprotection.org/second-largest-bank-failure-in-us-history-svbs-collapse/?feed_id=82412&_unique_id=6423bcbb73e10 #Inflation #Retirement #GoldIRA #Wealth #Investing #bankcollapse #Banking #businessnews #siliconvalleybang #usnews #BankFailures #bankcollapse #Banking #businessnews #siliconvalleybang #usnews
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