<p><a href="http://dailywire.com/topic/banks" target="_blank" rel="noopener">Silicon Valley Bank</a> collapsed after customers sought to withdraw funds due to the company’s lackluster balance sheet and overall difficulties in the <a href="http://dailywire.com/topic/silicon-valley" target="_blank" rel="noopener">startup</a> sector.</p>
<p>SVB announced a $1.75 billion share <a href="https://ir.svb.com/news-and-research/news/news-details/2023/SVB-Financial-Group-Announces-Proposed-Offerings-of-Common-Stock-and-Mandatory-Convertible-Preferred-Stock/default.aspx" target="_blank" rel="noopener">sale</a> on Wednesday after the company suffered heavy losses from the liquidation of a $21 billion bond portfolio, raising concerns among venture capital firms and startups with ties to the company about the safety of their assets. SVB, the 16th largest bank in the United States and the largest in Silicon Valley, lends to nearly half of publicly traded venture-backed technology and healthcare companies.</p>
<p>The Federal Deposit Insurance Corporation said on Friday that SVB was closed by the California Department of Financial Protection and Innovation. Insured depositors will have access to funds by Monday morning, according to a <a href="https://www.fdic.gov/news/press-releases/2023/pr23016.html" target="_blank" rel="noopener">press release</a> from the government-backed firm, while uninsured depositors can expect an advance dividend in the next week.</p>
<p>“At the time of closing, the amount of deposits in excess of the insurance limits was undetermined,” the entity said. “The amount of uninsured deposits will be determined once the FDIC obtains additional information from the bank and customers.”</p>
<p>The implosion of SVB would mark the largest bank failure since Washington Mutual collapsed in late 2008, <a href="https://www.axios.com/2023/03/10/silicon-valley-bank-run-svb-stock">according</a> to Axios.</p>
<p>Startups have been especially pressed for funds amid the macroeconomic turmoil that has marked the past several months, introducing additional financial pressures for the company. SVB Financial Group CEO Gregory Becker previously said in a letter to investors that “client cash burn has remained elevated and increased further in February, resulting in lower deposits than forecasted,” according to a <a href="https://www.reuters.com/business/finance/silicon-valley-bank-sell-stock-cope-with-cash-burn-2023-03-09/" target="_blank" rel="noopener">report</a> from Reuters.</p>
<p>Shares for SVB declined more than 60% this week before authorities halted trading for the company’s stock on Friday morning. Shares for First Republic Bank have also declined more than 23% this week, while shares for JPMorgan Chase and Bank of America declined 6% and 10% respectively as investors worry about contagion in the broader financial sector.</p>
<p>SVB told multiple clients on Thursday that wire transfers could be delayed, while the company’s customer support services were largely unavailable, according to a <a href="https://www.theinformation.com/articles/silicon-valley-bank-told-some-customers-money-transfers-are-backed-up" target="_blank" rel="noopener">report</a> from The Information. One founder was told by a customer support agent that “systems are down” and “wires are backed up,” although others were able to withdraw funds.</p>
<p><b data-stringify-type="bold"><a class="c-link" href="https://onelink.to/dwapp" target="_blank" rel="noopener noreferrer" data-stringify-link="https://onelink.to/dwapp" data-sk="tooltip_parent" aria-describedby="sk-tooltip-42937">CLICK HERE TO GET THE DAILY WIRE APP</a></b></p>
<p>SVB maintains some $209 billion in consolidated assets, according to <a href="https://www.federalreserve.gov/releases/lbr/current/" target="_blank" rel="noopener">data</a> from the Federal Reserve. Venture capital firms such Founders Fund, Coatue Management, Union Square Ventures, and Founders Collective exhorted portfolio companies to remove their assets, according to a <a href="https://www.bloomberg.com/news/articles/2023-03-09/svb-ceo-becker-asks-silicon-valley-bank-clients-to-stay-calm?srnd=wealth" target="_blank" rel="noopener">report</a> from Bloomberg, while Sequoia Capital reiterated its diversification policy.</p>
<p>Becker told clients to “stay calm” during a brief call with investors on Thursday afternoon.</p>
<p>Pershing Square Capital Management CEO Bill Ackman had said on Thursday that the federal government should <a href="https://twitter.com/BillAckman/status/1634046574157348864" target="_blank" rel="noopener">consider</a> offering a bailout package to SVB. He asserted that the failure of the company could “destroy an important long-term driver of the economy” and suggested that “the dominoes” may “continue to fall” if other banks face sudden demand for withdrawals.</p>
<p>The administrations of former President George W. Bush and former President Barack Obama previously introduced government bailouts for commercial and investment banks during the Great Recession, during which financial institutions were overexposed to subprime mortgages.</p>

<script async src="https://www.instagram.com/embed.js"></script>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
<script async src="https://www.tiktok.com/embed.js"></script><div data-widget-host="revcontent" data-pub-id="165152" data-widget-id="290588"></div><script src="https://delivery.revcontent.com/165152/290588/widget.js"></script>

Regulators Shut Down Major Tech Bank After Run On Savings

CONTINUE READING

Bud Light Sales Continue To Plummet, May Soon Lose Status As Number-One Beer

‘Profoundly Christian’: Former Head Of Anglican Church Presses British Government To Endorse Assisted Suicide

Ben Shapiro Reacts To Debt Limit Deal, Hits Both Democrats And Republicans Over Spending Habits

‘The Chosen’ Defends Pride Flag Spotted On Set: ‘Let The Show Speak For Itself’

Chick-Fil-A Faces Backlash As Their Diversity Efforts Resurface, Other Woke Brands Take Beating

North Korea Sentenced Two-Year-Old To Life In Prison After Family Caught With Bible: State Department

News

Banks

California

Economy

Silicon Valley

U.S.

A video goes viral showing a baby being refused his mother by two gay "dads". This is just the tip of the iceberg, which is why we will have an important discussion today about surrogacy. 

Hour 1

The Matt Walsh Show

Ep. 1765 - This Video Is One Of The Worst Things I've Seen In A Long Time 

The Strait of Hormuz officially opens for business (kind of), the Pope makes “shocking” comments on immigration, and President Trump promises UFO disclosure at TPUSA. 


The Michael Knowles Show

Ep. 1956 -  Pope Leo's "SHOCKING" Immigration Comments EXPLAINED

A false miscreed has corrupted our leadership class.


The Andrew Klavan Show

Ep. 1275 - Dumb, Dumber and Progressive

President Trump announces a 10-day ceasefire between Lebanon and Israel, a murder-suicide involving former Democratic Lieutenant Governor Justin Fairfax shakes Virginia, and France and Britain hold a conference to secure the Strait of Hormuz – after the Iranian conflict ends. Get the facts first with Morning Wire.

- - -

Ep. 2738

- - -

Wake up with new Morning Wire merch: https://bit.ly/4lIubt3

- - -

Today's Sponsors:

Alliance Defending Freedom - Visit https://JoinADF.com/WIRE or text 'WIRE' to 83848 to learn more.

Pocket Hose - Text MORNING to 64000 to get a FREE pocket pivot and their 10-pattern sprayer with the purchase of ANY size Copper Head hose. Message and data rates may apply.

Morning Wire

U.S. Expands Hormuz Blockade & VA Fairfax Deaths Investigated | 4.17.26

U.S. Expands Hormuz Blockade & VA Fairfax Deaths Investigated | 4.17.26 [Member Exclusive]

A ceasefire goes into effect between Israel and Lebanon, a tragic murder-suicide rocks Virginia, and Dairy Queen deploys AI in the drive-thru. Get the facts first with Evening Wire.
- - -
Ep. 2737
- - -
Wake up with new Morning Wire merch: https://bit.ly/4lIubt3 
- - -
Today’s Sponsor:

Alliance Defending Freedom - Visit https://JoinADF.com/WIRE or text “WIRE” to 83848 to learn more.


Evening Wire: Lebanon Ceasefire Begins & Murder-Suicide Rocks VA | 4.16.26

The Pendragon Cycle

Menu

— News —

Regulators Shut Down Major Tech Bank After Run On Savings