L R AS Published on Sunday 19 March 2023 - n° 437 - Categories:stopping / restarting of activity
Silicon Valley Bank, a start-up specialist, goes bankrupt
Silicon Valley Bank went bankrupt due to continued losses in the bond market. The $209 billion
of Silicon Valley Bank's assets make its collapse the second largest bank failure in US history. The bank's challenges, some of which were known, accelerated when it announced the sale of $21 billion in assets at a 9% loss, in order to still cover all the withdrawals.
This prompted several business groups to quickly withdraw $42 billion in assets, precipitating insolvency.
PV Magazine of 15 March
Editor's note: The failure of this bank means a much greater loss for the entire banking sector and, more broadly, for all the bank's customers, who have to find another bank in a hurry, renegotiate their loans, etc.