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Silicon Valley Bank collapse worst since Great Recession, many worry it’s not the end
A run took place on Silicon Valley Bank (SVB) this week and within 48 hours the bank defaulted and was shut down by the Federal Deposit Insurance Corporation (FDIC) on Friday, marking the second-biggest bank failure in US history. | It is the largest default since the Great Recession 15 years ago when Washington Mutual hit the skids. Many experts and economists are blaming out-of-control inflation and interest rates under the Biden administration. There is growing fear this bank default could spread to other banks as well. ● On March 8th the bank surprised everyone by trying to raise $2.5 billion to plug a hole in its balance sheet. That reportedly started the run. The bank catered to venture capitalists and over 90% of accounts allegedly had over $250,000 in them. The FDIC only covers up to $250,000, so a lot of money may be lost, causing businesses to close their doors next week and resulting in employees going unpaid. The line for people to get their money out of the bank on Friday was 50-people-deep. They were told by an FDIC representative at the door to the bank that they could not get their money out of the bank currently. 💬 “This is an extinction-level event for startups,” Y Combinator CEO Garry Tan proclaimed, according to Fox Business. “I literally have been hearing from hundreds of our founders asking for help on how they can get through this. They are asking, ‘Do I have to furlough my workers?’”
■ Biden emphasizes U.S. banking system is safe [just like the vaccine] (CLG)
■ Terrorist Fed Wipes out Banks as Cryptocollapse Flushes through the System (The Great Recession Blog)
■ As losses mounted, Silicon Valley Bank doubled down on woke investments and left-wing rhetoric
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