Silicon Valley Bank Collapses

by Devyn Xu, Staff Writer

The second biggest bank crash in US history — the Silicon Valley Bank collapse. The bank’s shortage of cash caused it to sell its bonds at huge losses. In less than four days, scared depositors withdrew enough funds to cause the entire bank’s failure.

Silicon Valley Bank announced a $1.8 billion loss, which in turn made people more wary. Strategies were made to raise $2.25 billion in capital after the failure, however, businesses and investors kept withdrawing money. The bank’s clients withdrew more than $40 billion and its stocks dropped around 60%.

The failure shed light on the Bank’s poor risk management practices and poor regulation of the tech industry.