Those with accounts at Silicon Valley Bank are in for a treat. They are afraid of not getting their money.
Appeals to the US government to end the Silicon Valley Bank crisis have been futile. The US government has refused to give a relief package to Silicon Valley Bank. If the package is not found, the chances of this big bank to survive are slim.
Let us tell you that Silicon Valley Bank of America has been closed on Friday. The bank was the 16th largest bank in the United States. There are accounts of citizens of several countries, including Indians, who are believed to have lost investors’ money when the system malfunctioned. The money of thousands of account holders is also deposited in the bank. Many startups were also involved, so their money also sunk. News of Silicon Valley Bank closing down on March 10 spread like wildfire. The latest news is that now the Federal Deposit Insurance Corporation can handle it.
According to the Reuters news agency, the reason for the closure of Silicon Valley Bank was its continuous losses and lack of funding. Because of the failure in both cases, shares of SVB Financial Group, the parent company of Silicon Valley Bank, fell 60% on March 9. As of March 10, the bank’s shares (Silicon Valley Bankshares) fell by nearly 70%, and it was suspended from trading. Due to this crisis, the stock market of not only America but also other countries including India has fallen.
Regulators ordered Silicon Valley Bank to close on March 10. It is being described as the biggest failure in US history since the 2008 financial crisis. At the same time, this is another big case of bank collapse.
On the other hand, the Federal Deposit Insurance Corporation is now responsible for protecting the money of customers deposited in the bank. Even now those who have accounts with SVB are in fear. They are afraid of not getting their money.
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