Silicon Valley Bank's assets were seized by US regulators after depositors began withdrawing funds en masse amid fears over the lender's financial health.
Why it matters
The collapse of Silicon Valley Bank is the biggest bank failure in the US since 2008 and has sent shockwaves through financial and tech circles. The bank's business was heavily catered towards US tech startups and its collapse has raised concerns about the stability of the global financial system.
What the papers say
The sources agree that Silicon Valley Bank has collapsed after a bank run and that it is the biggest bank failure in the US since 2008. They also agree that the bank's business was heavily catered towards US tech startups. The sources differ in their coverage of the fallout of the bank's collapse and the measures being taken to contain it.
How we got here
During the COVID-19 pandemic, the lender saw an influx of deposits as tech companies did a roaring trade catering to people stuck at home. SVB invested much of this cash in US government bonds - traditionally one of the safest types of investment. The bank invested a large portion of the deposits, as banks do. Silicon Valley Bank provided banking services to nearly half of the country's venture capital-backed technology and life-science companies, according to its website, and to over 2,500 venture capital firms.
More on these topics
Silicon Valley Bank, a subsidiary of SVB Financial Group, is a U.S.-based high-tech commercial bank. The bank has helped fund more than 30,000 start-ups.
The Federal Reserve System is the central banking system of the United States of America. It was created on December 23, 1913, with the enactment of the Federal Reserve Act, after a series of financial panics led to the desire for central control of the m
The United States of America, commonly known as the United States or America, is a country mostly located in central North America, between Canada and Mexico.
Silicon Valley is a region in the southern part of the San Francisco Bay Area in Northern California that serves as a global center for high technology, innovation, venture capital, and social media.