Silicon Valley Bank, 16th largest bank in US has lost it’s 1.8 billion dollars in stock market in an effort to raise funds. Its the second bank failure in US after the Silvergate Capital Corp. Califonia regulator shut down the bank and put it under control of the US Federal Deposit Insurance Corporation.
SVB- Tech lender
Silicon valley bank is the biggest lender to tech startup in california. After the meltdown , US regulator closed down all the lending to avert the crisis. Its a watershed moment for tech startups majorly for china tech startups.
Credit Suisse Bank Share Fall
Credit Suisse Bank share down by 24% on wednesdays. Record drop in share prices feared the people of next financial crisis. People are calling Credit Suisse share fall, a moment of Lehman Brothers fall in 2008.
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Pulling Cash Out
After the meltdown news, depositors are pulling all their money out of the bank which worsen the bank cash problem. Its the biggest bank failure after the 2008 financial crisis. Bank regulator asking people not to pull out the money, it will take one and half month to settle down the problems. Some expert says SVB is ideal condition to bailout the bank crisis situation.
2008 Financial Crisis
In 2008, US largest bank Lehmon Brothers meltdown. It was the largest bank which survive the 1929 great financial crisis. Much of the associated bank losses all its share value. Its meltdown shockwave was observed all around the world.
HSBC Aquire SVB-UK
All the branch in other country is facing some problems. Depositors are in panic on safety of their money. On march 13, HSBC UK Bank Plc anounces aquiring Silicon Valley Bank UK limited for £1 . It has anounced that all the depositors money in SVB-UK is safe now.
US govt is still observing the other banks conditions and put control over sillicon valley bank. World financial and security market is still in shock. Expert are suggesting it is not going to be major financial crisis.
You rightly analyze all the issue.