Silicon Valley Bank Shut Down by California
Under-fire Silicon Valley Bank (SVB), which is regarded as a major financial institution targeted at backing startups, was officially shut down by the California Department of Financial Protection and Innovation (DFPI).
There was no clear reason for the closing of the bank, but the California regulator rei-titrated that the move was done in the name of protecting insured deposits. According to DFPI, depositors “will have full access to their insured deposits no later than Monday morning, March 13, 2023.”
As the news circulated, the bank witnessed a calamitous downfall in its stock price from nearly $270 to a low of $106 in a matter of 24 hours, marking a sharp 60% drop which was the biggest one-day wipeout in history, according to the Wall Street Journal.
Businesses and policymakers came to the media to comment about the SVP collapse and failure, with many being “alarmed” by what happened as it is regarded as the second largest bank failure in U.S. history.
Sources:
https://cointelegraph.com/news/silicon-valley-bank-shut-down-by-california-regulator