The collapse of Silicon Valley Bank marks the largest bank failure since the Great Recession.

by | Apr 9, 2023 | Recession News | 46 comments

The collapse of Silicon Valley Bank marks the largest bank failure since the Great Recession.




Silicon Valley Bank, the 16th largest bank in the United States, is shut down. With $175 billion in deposits, it is the biggest American bank to fail since the 2008 financial crisis. CNBC’s Deirdre Bosa reports.

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Silicon Valley Bank, one of the largest banks in the United States focused on technology and innovation, has collapsed in what has been described as the biggest bank failure since the Great Recession. The bank’s failure has sent shockwaves through the technology industry, which depended heavily on the bank for funding and support.

Silicon Valley Bank, headquartered in Santa Clara, California, was founded in 1983 and quickly became a leading player in the tech-funding space. The bank specialized in providing capital and credit to start-ups, venture capital firms, and technology companies. However, in recent years, the bank’s loan book grew rapidly, with some observers warning that it was taking on too much risk.

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The bank’s collapse has been attributed to the economic fallout from the COVID-19 pandemic, which has severely impacted the tech industry. As the pandemic worsened, many start-ups and technology companies were forced to cut costs, layoff employees, and reduce their operations. This led to a sharp decline in demand for capital and credit, which hit Silicon Valley Bank hard.

The bank’s collapse has left many tech companies scrambling to find alternative funding sources. Startups that were in the process of raising funds from Silicon Valley Bank have been left in limbo, with some having to pull out of planned investments altogether. Venture capital firms that had invested in the bank are now expected to take a significant hit to their portfolios.

The collapse of Silicon Valley Bank also underscores the ongoing challenges facing traditional banks. With the rise of fintech and other digital disruptors, traditional banks are facing increased competition and pressure to adapt to the changing landscape. Many banks have struggled to keep up, often finding themselves burdened by outdated systems and operating models.

While Silicon Valley Bank’s failure is undoubtedly a blow to the tech industry, it also highlights the importance of diversification in financial portfolios. Investors who had heavily invested in Silicon Valley Bank are now feeling the effects of its collapse, highlighting the need for a diversified portfolio that spreads risk across a range of assets.

In the end, the collapse of Silicon Valley Bank serves as a cautionary tale for both the tech industry and the banking sector as a whole. It underscores the need for effective risk management, sound business practices, and the ability to adapt to changing market conditions. Ultimately, the failure of Silicon Valley Bank will be felt for years to come and serves as a sobering reminder that even the most successful companies are not immune to failure.

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46 Comments

  1. Donna Dylon

    I’ve been through so much these past years to the point where I just gave up and laid there for weeks waiting to get better, but I knew nothing would get better and I’m jus t stuck in one place or just repeating a lot of stuff that happened that I knew would not get better, but one day I just decided to get away from the things that hurt me and try to be as happy as I can be and make the best of it.
    I say a big thank you to bonaveststockfx for being reliable when it comes to crypto currency investment.
    Bonaveststockfx is more reliable than this so called bank that ran away with our money.

  2. Emily Tiana

    Silicon Valley Bank (SVB) was the 16th largest bank in the US, and it wasn't subject to the most strict controls. How many banks actually are subject to those controls, besides the big four? Any bank could suffer a run and fail, and if that happens to a community level or even state level bank it probably won't upset the national economy or ecosystem of banks, but any multi-state bank should be more closely watched.

  3. B dubb

    Mehhh..it's just money.

  4. Mellitus scott

    Your explanation is realistic and straight to the point. On the other hand there are many ways of manipulating the market, I was able to grasp the knowledge of trading crypto assets early enough, but i was still limited due to my lack of technical understanding of how to analyse the digital market, all that changed when i encountered (Harvey Barrett FX ) strategy. more emphasis should be put into day trading as it is less affected by the unpredictable nature of the market.

  5. Joe Smartballs

    I have heard of the Great Depression, but what is a Great Recession? Bible says women can't teach.

  6. Patricia Carlos

    After a horrendous 2022, shell-stunned financial backers have misfortunes to recover and a lot to consider, as an expansion report and a pile of different information did close to nothing to change assumptions that the Central bank would probably keep climbing interest rates regardless of whether the economy dials back, And that implies more red ink for portfolios for the principal quarter of year 2023. How might I benefit from the ongoing unstable market, I'm currently at a junction choosing if to exchange my $250k security/stock portfolio

  7. Jeremiah Yosseff

    Gotta read that FDIC you can only get $250,000

  8. Case Nately

    Print more money. Spend it on diesel generators and electric cars. Parades and talking points. Whats the worse that can happen?

  9. Wilfredo Vilanova

    Biden really did a very good job. Almost 1 million Mexican and ilegal aliens coming with out supervision, giving them housing with money from tax payers, receiving 1.5 billion in his bank account, with out housing for homeless army veteran. Full scale traitor to our country.

  10. Lynda StarWriter

    Today's Monday….and Signature Bank is out for the count, too….Uh oh…

  11. Elbert Lee

    The banking sector started to collapse one by one due to many factors, mainly the economy. We have to thank Biden for the bad handling of the economy, the trade war, the tech war, the Federal Reserve rising interest rate like a rocket, 31.46 trillion of US debt, and the proxy war in Ukraine. Instead of fixing the bad economy after the pandemic, Biden chooses to have a proxy war that ends up with more than 400 billion dollars in the Ukraine war with the Russians. Thank you, sleepy Joe.

  12. A Tiger-Shark

    "Working as intended." Joe Biden and the regressive left politicians.

  13. Scotty Mathieson

    Wow, isn't it the Fed that keep raising the interest rates? Isn't this to fund the war that nobody cares about but the Media ???!!! I hope I see more banks fail, I want to see rich liberals crying again !!!! Yellen needs fired just like Trump said WAYYYY back !!!

  14. Smith Anvil

    Reaganomics strikes again.

  15. samuel ham

    the American dream with the Rotshild family Kazars, crown of England and c&o. Here is the people of the chosen lights that have been thrown away for centuries because they destroy and steal, infiltrate and pervert

  16. Eager lawncare

    Gee .. didn't see that coming

  17. VS1

    Rising interest rates? You sure this is not another Sam bankman fried, Elizabeth Holmes, Alex Murdaugh, Bernie Madeoff.. seriously how many more of these evil monsters are we really dealing with here?

  18. Disernerning Eye's

    Although we all participated in the largest ponzi scheme in history we don't own this system the Fed and the banking cartel's do. Now that they have destroy our food and water supply and have the technology to digitally Enslave us there collapsing Their system and there's nothing we can do about it!

  19. Te’ Douglas

    Y'all can go ahead put money in Bitcoin Coinbase please make Bitcoin 1m coin please

  20. E

    boris Johnson looks rough @1:32

  21. BodhiVista Productions

    Just another orchestrated event.

    This is one of the reasons I stopped participating in the Color of Law and Fiction of Law schemes of the men and women of the legalese banking society over a decade ago. There is a way to live without being a slave to the system. I have not had ID since 2009. I stopped using everything else in 2013. I had quite an intense experience in the beginning. Now I live a magical life in a slightly different realm.  Using fiat currency, working for decades for the illusion of money, loans, bills, etc is just perpetuating the illusions the deceivers have created. I hope the system does crash and that many choose not to fall for the digital currency scheme and choose to create a new way of being. Like Buckminster Fuller advised, what you resist, persists and multiplies. Instead of complaining about, blaming and fighting a system from the age that is ending, perhaps co-create something new in the Aquarian age. Our Mother Earth freely provides all we need to thrive. We placed imaginary values on her resources, our labor and talents and the service to self types created an illusionary realm wherein we all were programmed to believe we have to pay to live here. Come out of her, my people. Babyloonia is falling. As soon as the masses  stop participating in the old schemes and co-creating free share communities wherein all thrive, the nashing  of teeth will be heard. Wakey Wakey

  22. Cool guy

    we need more experts running the world, if only we had more experts, we need experts, if only that bank had experts running it.

  23. Huames15

    Good thing I keep my hundreds of thousands of dollars under my mattress. Banks ain’t got nothing on me

  24. Mike Seigle

    No Bailouts for Billionaires. Shut the banks down.

  25. David

    SVB and Signature Bank. Two failures in several days, both banks in Woke states. Couldn't happen to better places, Wokeness doesn't work! More to come!

  26. Mike King

    Better get your money out of American banks while this clown is in office

  27. Colton Brown

    What great "recession"? There was a great Depression. Then to stay on subject. You know full well Biden has done everything to push us into a digital currency. Set that up, crush the dollar, burn the banks, and we are on a digital currency completely controlled by a government that is set on enslaving us all. Do as you are told or "your money" will be shut off. Privacy will be gone and every little thing you do will be tracked. Call it a blackout while your head is buried in the sand. But the storm is here. Good luck to all the government hand out dependents. You free ride will be the first to dry up.

  28. Chuck Sneed

    It's ok little-hat bros, there is always the "honest labor" option.

  29. Lucia Cabrera

    China did that. They own SVB.

  30. Zues force one

    You forclosec on peoples homes but bail banks out.wfkng shame.

  31. Zues force one

    Get rid of federal reserve.

  32. Brian Lee

    Funny, the conspiracy theorist said this would happen weeks ago. Signature bank has failed as well.
    This is how the government introduces the digital dollar as a saving grace

  33. Johnny Dough

    Bring on the crash. Welcome to a new global system.

  34. YS K

    Profits are privatized but losses are socialized. The worst kind of socialism.

  35. YS K

    I thought the economy was strong. Why we always being lied to.

  36. Easter Rabbit

    lol you all voted for this

  37. Joes dog

    precurssor of whats to come. biden will bail us out though.

  38. Andrew Olearnick

    Is there a single person in this administration who is not an incompetent or liar.

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