The abrupt collapse of Silicon Valley Bank, the second-biggest bank failure in U.S. history, happened after a run on deposits doomed the tech-focused lender’s plans to raise fresh capital. This prompted regulators to impose emergency measures to stem the fallout.
WSJ’s Rachel Ensign explains how the crisis unfolded and what could happen next.
Photo: Jeff Chiu/Associated Press
0:00 Silicon Valley Bank collapsed on March 10
0:30 What led to the Silicon Valley Bank collapse?
1:53 How the SVB collapse could have broader economic effects
#SiliconValleyBank #SVB #WSJ…(read more)
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The collapse of Silicon Valley Bank has shocked the financial world, with investors and regulators scrambling to make sense of the sudden downfall of one of the world’s most prominent banks.
So what happened to Silicon Valley Bank, and what does it mean for the future of banking and finance?
The collapse of Silicon Valley Bank can be traced back to a number of factors, including an overly aggressive lending strategy, a lack of oversight from regulators, and a rapidly changing financial landscape.
For years, Silicon Valley Bank was known for its willingness to take risks and fund high-growth startups, even if those startups were initially seen as too risky for traditional banks to finance. The bank’s approach made it hugely popular with entrepreneurs and investors alike, and helped to fuel the rapid growth of the tech industry in Silicon Valley and beyond.
However, this approach also exposed Silicon Valley Bank to significant risk, and the bank’s loan portfolio began to show signs of strain in the years leading up to its collapse.
At the same time, regulators were increasingly concerned about Silicon Valley Bank’s business practices, with some experts warning that the bank’s lending practices could be contributing to the formation of a bubble in the tech industry.
Despite these warning signs, however, regulators failed to take action to rein in Silicon Valley Bank’s lending practices, leaving the bank to continue to take on higher levels of risk and exposure than it could sustain.
Ultimately, this combination of factors proved too much for the bank, and it ultimately collapsed under the weight of its own debts and bad investments.
So what does this mean for the future of banking and finance? Many experts believe that Silicon Valley Bank’s collapse is a warning of the dangers of overly aggressive lending practices, and underscores the importance of effective oversight and regulation by financial authorities.
At the same time, however, the collapse of Silicon Valley Bank may also provide an opportunity for new, innovative players to step in and fill the void left by the bank’s demise. With the tech industry continuing to grow and evolve at an unprecedented pace, there will likely be no shortage of entrepreneurs and investors looking for the kind of flexible, risk-taking approach that Silicon Valley Bank was once known for.
Ultimately, the fallout from the collapse of Silicon Valley Bank is likely to be felt for years to come, as the financial world grapples with the lessons to be learned from this shocking failure. But even as the banking industry changes and evolves, one thing seems certain: the appetite for risk and innovation in Silicon Valley and beyond is unlikely to diminish any time soon.
Lez be honest. It's China.
The SVB collapse has taught me to never have a bank account with more than $250k.
Ask capital to make more money to cover the stock
nice content
Hii I am not
Thanks for the explanation is very easy
Silicon Valley Girls cries foul for the demise of Silicon Valley Bank. Gag me with a silver spoon!
News anchor very beautiful……….
very nice videos
Most banks don’t have more than 10% capital
Awesome
The current bank crisis has me deeply concerned. If a major bank like SVB can experience difficulties, it's reasonable to worry about the impact on other financial institutions. I'm aware of someone I know who operates a rapidly expanding startup, and they were severely impacted by the bank run. Consequently, I withdrew over $340k from my own account, recognizing that FDIC coverage is limited to $250,000 and a potential collapse could have far-reaching consequences. At this point, I'm considering investing in the stock market. I'm wondering if anyone has advice on how I might proceed with this plan.
Miraveststock has been more profitable since the crisis of vallycoiin
Good luck good work
BILLIONS OF DOLLARS MORE TO UKRAINE ~ Awaken Joe
This Video is very Nice. Thanks for Video.
She has throat cancer? Uuugh
I have no money in the bank, I only use my card when I transfer money and that's it
Nice
Banks should improve their lending standards. For example, how can they lend money at <3% fixed interest rate for the next 30 years? While they know the rates are not going to stay at 0% forever. It’s shame and disgrace that a common person like me have to educate these so called financial experts.
Could China and the US be laying the groundwork for a military farce over Taiwan?
This Bank Crash is planned by the governement to crash the dollar and bring in the new world digital Money that the government control.
The planned collapse of the banks is to consolidate the banks to one world bank that is going to force everyone to go to their Government Crypto. This is why they are outlawing all other Crypto to use only government Crypto. The Transgender stuff is just to shut up the critics.
USA should focus on their own country instead of wasting their country's tax payers money in trying to damage other country's growing economy or try to change regime just because that country's leadership refused to dance on the tunes of USA.
Time to invest heavily in drugs booze and loose women. I'm not worried about it, I eat bugs, roadkill and garbage, I haven't touched money since 1972. I'm leaving this message with my mind.
The banking chaos is just the tip of the iceberg.
NOPE, THIS IS BY DESIGN!
THEY ALREADY BUILT SOFTWARES AND SYSTEMS TO TAKE CONTROL OF ALL U.S. ACCOUNTS. THE GOVERNMENT WANTS TO CONTROL ALL OF YOUR BANKING TRANSACTIONS. IT'S THE ONLY WAY THEY FEEL THEY CAN WATCH ALL YOUR MOVES!
A series of bad decisions taken in panic, nothing else…
I don't believe in luck I believe in trust and
understanding. I've been trading forex for some
months now and I've made good amount of money
of over $78,100 with her simple strategies of
trading. Meeting with stacy has been one of my best
experience these past few months and am expecting
more withdraws from her
That's why I use online banks because you can get your money out whenever you want online banks are the way to go!
The negative impact of SVB and SI debacles has been reflected in the regional bank ETF (KRE) which has witnessed a decline of over 20%. This event has triggered contagion effects, dragging the entire market lower. However, historically speaking, a localized and narrow contagion of this nature presents an opportune time to invest in strong, financially stable companies with substantial cash reserves on their balance sheets.
This explanation didn't cover how CA Governor Gavin Newsom had significant ties to the bank and requested that they put $100K into his wife's foundation, which they did. Newsom then arranged for the government to pay depositors with over $250,000. This is criminal corruption given his relationship to the bank.
Propaganda
Boycott WSJ. They tell so many lies and don’t redact them
Explain and explain and explain?
OK. Only this words;
China, the world changed!!!!!
The future war is the technologies.
Russia and China moves his pieces on the chees table.
Please America wake up!!!!
For God america Wake up already!!!!!
Incredible a war in their own noses
SVB gave $75 million to BLM.
Bad start to the year with these banks collapsing, META down 40k, ALLP down 35k, Draft Kings down 6k, NIO down 15K, ABML down 8k, and my wife doesn’t know. I'm just hanging on to Jim Cramer's words about opportunities in volatile times so perhaps, I either wait for a recovery or pick profitable investments to substitute for my loss.
well look at what's happening, is happening through out the world and the need to improvise regarding your assets, and monies etc. at this moment is paramount to say the least..
this improvisation should take place outside of this corrupted and made up system, among ourselves and others period…
the reason for this is that this 'system' has failed us and has collapsed for sometime now.
so lookout for your own and xont use this money system if possible..
because 'you will own nothing and be unhappy' as sir santa klaus mentions repetitely.
reason for no cash or coin is they're aim is to have 500 million in the in regarding this new banking system and all else out and therefore the woute above by clowny klaus….
Mind you reference to recent bank run. Silicone Valley Regional banks are not the only banks that use outdated software system to manage there portfolio of US Treasuries. Wall Street and media with the Fed are lying to the public and doing a dis-service to the investing US public, I am glad that I have nothing to buy from them as they will try to quietly unload onto the public. Look out for media they also are in cahoots in public manipulation.