<p>The US banking crisis weighs on the broader markets, with global financial markets flashing red across the board and the slide in banking stocks deepens as contagion risks from the collapse of Silicon Valley Bank (SVB) rattles markets.</p>

<p>Over the weekend and Monday, the US Federal Reserve and the Treasury took steps to stabilise the banking system, but concerns over the fallout from the collapse of SVB persisted despite those actions by regulators.</p>

<p>Experts are now predicting more pain for global banks and the financial sector worldwide.</p>

<p>The dramatic collapse of Silicon Valley Bank in the United States led to frantic developments in Britain as authorities scrambled to take charge of the situation, a latest report has revealed.&nbsp;</p>

<p>A Reuters report claimed that at least half a dozen banks were looking to contact Silicon Valley Bank shortly after its collapse became the biggest debacle of a financial institution since the 2008 economic crisis.</p>

<h2><strong>HSBC's buyout of Silicon Valley Bank</strong></h2>

<p>On Monday, Europe's largest bank, HSBC, announced it was buying SVB UK.</p>

<p>SVB UK reportedly has assets of around 5.5 billion pounds and deposits of around 6.7 billion pounds. The quick buyout reflected fiercely urgent concerns that SVB's potential failure could reverberate throughout the UK's start-up industry.&nbsp;</p>

<p><strong>ALSO READ |&nbsp;<a href="https://www.wionews.com/india-news/an-indian-bank-became-a-victim-of-the-svb-collapse-in-the-most-unexpected-way-571519">An Indian bank became a victim of the SVB collapse in the most unexpected way</a></strong></p>

<p>"Whether HSBC's acquisition proves to be successful will largely come down to the asset quality of the loan book, which cannot be assumed to be good, given the early-stage nature of many of the borrowers," Jerry del Missier, former Chief Operating Officer at Barclays, and now Chief Investment Officer at Copper Street Capital, was quoted as saying by Reuters.&nbsp;</p>

<h2><strong>Bank of England considered seeking insolvency for SVB UK: Report</strong></h2>

<p>According to Reuters, the Bank of England, during its initial few hours of action, also sought insolvency in the event there was no buyer out there for SVB UK. The sense of uneasiness began because NatWest, SVB UK's clearing bank in Britain, had halted processing transactions, the report added.</p>

<p>The U.S. Federal Deposit Insurance Corporation had also shut off access to the parent company's technology platform, the report added while citing a relevant source. It simply meant that the potential bidders and treasury officials called both the FDIC and NatWest over the weekend to get SVB UK running again.</p>

<p>As the crisis deepened, on Sunday morning finance minister Jeremy Hunt sought to reassure Silicon Valley Bank's customers in Britain that the government was working on a solution.</p>

<h2><strong>The 30 minute deadline</strong></h2>

<p>As the Silicon Valley Bank crisis broke out, the United Kingdom Prime Minister Rishi Sunak was en route to San Diego on an over 15-hour long flight.</p>

<p>HSBC's team including CEO Noel Quinn and UK CEO Ian Stuart began closer scrutiny of SVB UK that afternoon, Reuters reported while citing a source familiar with the matter.</p>

<p>By early evening on Sunday, officials from the Treasury gave potential bidders a final 30 minutes to submit their offers.</p>

<p>Officials from the Bank of England and Treasury along with board members from SVB UK were then locked in talks.</p>

<p>Meanwhile, in the United States, regulators moved to protect SVB depositors, as well as implementing wider measures to shore up confidence in the banking system.</p>

<h2><strong>Why did HSBC buy SVB UK?</strong></h2>

<p>This is because HSBC's CEO Noel Quinn was reportedly attracted by the potential to bring some 3,000 high-growth technology and startup clients all at once.</p>

<p><strong>ALSO WATCH |&nbsp;HSBC acquires the UK arm of Silicon Valley Bank | WION Dispatch</strong></p>

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<p>The purely nominal purchase price and SVB UK's underlying health meant the deal also made financial sense, Reuters reported while citing a source.&nbsp;</p>

<h2><strong>The biggest losers from SVB’s collapse</strong></h2>

<p>Sweden’s biggest pension fund, Alecta, is set to lose as much as $1.1 billion on bets it had made. However, according to Eurogroup President Paschal Donohoe, the euro zone has “limited exposure” to the fallout from the SVB’s collapse — and thereby will be able to manage the risks such as the current SVB crisis.&nbsp;</p>

<p>Shockwaves from the collapse of Silicon Valley Bank have further pounded global bank stocks on Tuesday. The assurances from the US President Joe Biden and other policymakers have reportedly done little to calm the markets down and have prompted a rethink on the interest rate outlook.</p>

<p>Biden's efforts to reassure markets and depositors came after emergency U.S. measures to shore up banks by giving them access to additional funding failed to dispel investor worries about potential contagion to other lenders worldwide.</p>

<h2><strong>About Silicon Valley Bank’s Collapse</strong></h2>

<p>Silicon Valley Bank was founded in 1983 in Santa Clara, California. It soon emerged as a financial institution of choice for the tech sector.</p>

<p>As of 2021, the bank said that it was the primary financial institution for half of all US venture-backed startups and pitched itself as "financial partner of the innovation economy." All that basically means that it has&nbsp;been&nbsp;knitted into the financial infrastructure of the tech industry, especially the startups.</p>

<p>Silicon Valley Bank's collapse reportedly began&nbsp;in the second week of March. The bank takes deposits from clients and invests them in generally safe securities, such as bonds. As the Federal Reserve has increased interest rates, those bonds became a liability.</p>

<p>On Wednesday, March 8, SVB’s parent company, SVB Financial Group, said it would undertake a $2.25 billion share sale after selling $21 billion of securities from its portfolio at a nearly $2 billion loss. The move was meant to shore up its balance sheet. Instead, it spooked markets and clients, finally leading to its collapse.</p>

<p><em>(With inputs from agencies)</em><br />
<br />
&nbsp;</p>

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The US banking crisis weighs on the broader markets, with global financial markets flashing red across the board and the slide in banking stocks deepens as contagion risks from the collapse of Silicon Valley Bank (SVB) rattles markets.

The US banking crisis weighs on the broader markets, with global financial markets flashing red across the board and the slide in banking stocks deepens as contagion risks from the collapse of Silicon Valley Bank (SVB) rattles markets. Over the weekend and Monday, the US Federal Reserve and the Treasury took steps to stabilise the banking system, but concerns over the fallout from the collapse of SVB persisted despite those actions by regulators. Experts are now predicting more pain for global banks and the financial sector worldwide. The dramatic collapse of Silicon Valley Bank in the United States led to frantic developments in Britain as authorities scrambled to take charge of the situation, a latest report has revealed. A Reuters report claimed that at least half a dozen banks were looking to contact Silicon Valley Bank shortly after its collapse became the biggest debacle of a financial institution since the 2008 economic crisis. HSBC's buyout of Silicon Valley Bank On Monday, Europe's largest bank, HSBC, announced it was buying SVB UK. SVB UK reportedly has assets of around 5.5 billion pounds and deposits of around 6.7 billion pounds. The quick buyout reflected fiercely urgent concerns that SVB's potential failure could reverberate throughout the UK's start-up industry. ALSO READ | An Indian bank became a victim of the SVB collapse in the most unexpected way "Whether HSBC's acquisition proves to be successful will largely come down to the asset quality of the loan book, which cannot be assumed to be good, given the early-stage nature of many of the borrowers," Jerry del Missier, former Chief Operating Officer at Barclays, and now Chief Investment Officer at Copper Street Capital, was quoted as saying by Reuters. Bank of England considered seeking insolvency for SVB UK: Report According to Reuters, the Bank of England, during its initial few hours of action, also sought insolvency in the event there was no buyer out there for SVB UK. The sense of uneasiness began because NatWest, SVB UK's clearing bank in Britain, had halted processing transactions, the report added. The U.S. Federal Deposit Insurance Corporation had also shut off access to the parent company's technology platform, the report added while citing a relevant source. It simply meant that the potential bidders and treasury officials called both the FDIC and NatWest over the weekend to get SVB UK running again. As the crisis deepened, on Sunday morning finance minister Jeremy Hunt sought to reassure Silicon Valley Bank's customers in Britain that the government was working on a solution. The 30 minute deadline As the Silicon Valley Bank crisis broke out, the United Kingdom Prime Minister Rishi Sunak was en route to San Diego on an over 15-hour long flight. HSBC's team including CEO Noel Quinn and UK CEO Ian Stuart began closer scrutiny of SVB UK that afternoon, Reuters reported while citing a source familiar with the matter. By early evening on Sunday, officials from the Treasury gave potential bidders a final 30 minutes to submit their offers. Officials from the Bank of England and Treasury along with board members from SVB UK were then locked in talks. Meanwhile, in the United States, regulators moved to protect SVB depositors, as well as implementing wider measures to shore up confidence in the banking system. Why did HSBC buy SVB UK? This is because HSBC's CEO Noel Quinn was reportedly attracted by the potential to bring some 3,000 high-growth technology and startup clients all at once. ALSO WATCH | HSBC acquires the UK arm of Silicon Valley Bank | WION Dispatch × The purely nominal purchase price and SVB UK's underlying health meant the deal also made financial sense, Reuters reported while citing a source. The biggest losers from SVB’s collapse Sweden’s biggest pension fund, Alecta, is set to lose as much as $1.1 billion on bets it had made. However, according to Eurogroup President Paschal Donohoe, the euro zone has “limited exposure” to the fallout from the SVB’s collapse — and thereby will be able to manage the risks such as the current SVB crisis. Shockwaves from the collapse of Silicon Valley Bank have further pounded global bank stocks on Tuesday. The assurances from the US President Joe Biden and other policymakers have reportedly done little to calm the markets down and have prompted a rethink on the interest rate outlook. Biden's efforts to reassure markets and depositors came after emergency U.S. measures to shore up banks by giving them access to additional funding failed to dispel investor worries about potential contagion to other lenders worldwide. About Silicon Valley Bank’s Collapse Silicon Valley Bank was founded in 1983 in Santa Clara, California. It soon emerged as a financial institution of choice for the tech sector. As of 2021, the bank said that it was the primary financial institution for half of all US venture-backed startups and pitched itself as "financial partner of the innovation economy." All that basically means that it has been knitted into the financial infrastructure of the tech industry, especially the startups. Silicon Valley Bank's collapse reportedly began in the second week of March. The bank takes deposits from clients and invests them in generally safe securities, such as bonds. As the Federal Reserve has increased interest rates, those bonds became a liability. On Wednesday, March 8, SVB’s parent company, SVB Financial Group, said it would undertake a $2.25 billion share sale after selling $21 billion of securities from its portfolio at a nearly $2 billion loss. The move was meant to shore up its balance sheet. Instead, it spooked markets and clients, finally leading to its collapse. (With inputs from agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Silicon Valley Bank meltdown: What, why and how?

Employees of Silicon Valley Bank were offered 45 days of employment at one and a half times their salary by the Federal Deposit Insurance Corp, the U.S. regulator that took control of the collapsed lender on Friday.

Silicon Valley Bank staff offered 45 days of work at 1.5 times pay

<p>The US government has said that the depositors of the embattled Silicon Valley Bank (SVB) will be able to access all their cash from Monday (March 13) as it announced a series of emergency measures to restore people’s confidence in the American banking system.</p>

<p>The announcement came on Sunday when another bank, Signature Bank, which was on the brink of collapse in recent days, shut down. Signature’s customers will receive a similar deal, ensuring that even uninsured deposits will be returned to them Monday.</p>

<p>Signature Bank is a New York-based regional-size lender with significant cryptocurrency exposure which was shuttered on Sunday after its stock price tanked.</p>

<p>In a joint statement on Sunday, Treasury Secretary Janet Yellen, Federal Reserve Chair Jerome Powell and Federal Deposit Insurance Corporation Chairman Martin J Gruenberg said that the Federal Deposit Insurance Corporation will make SVB and Signature’s customers “whole”.</p>

<h2><strong>Venture capitalists quick to abandon ship on SVB</strong></h2>

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<p>With this move, the government has guaranteed to keep all deposits– even the uninsured money that customers kept with the failed banks – safe. It aims to prevent more bank runs and to help companies that deposited large sums with the banks to continue to make payroll and fund their operations, reports CNN.</p>

<p>The FDIC guarantees deposits, but only up to $250,000 per client and per bank.</p>

<p><strong>Also read |&nbsp;</strong><a href="https://www.wionews.com/business-economy/silicon-valley-bank-paid-out-annual-bonuses-to-employees-hours-before-seizure-report-571101">Silicon Valley Bank paid out annual bonuses to US employees just hours before seizure: Report</a></p>

<p>Moreover, the Fed announced it would make extra funding available to banks to help them meet the needs of depositors, which would include withdrawals.</p>

<p><strong>Also read |&nbsp;</strong><a href="https://www.wionews.com/business-economy/did-silicon-valley-bank-hoodwink-everyone-before-its-collapse-571111">Did Silicon Valley Bank hoodwink everyone before its collapse?</a></p>

<p>"We are taking decisive actions to protect the US economy by strengthening public confidence in our banking system," the agencies said in their joint statement.</p>

<p>"The US banking system remains resilient and on a solid foundation… Those reforms combined with today's actions demonstrate our commitment to take the necessary steps to ensure that depositors' savings remain safe."</p>

<p><em>(With inputs from agencies)</em></p>

<p><strong>WATCH WION LIVE HERE</strong></p>

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The US government has said that the depositors of the embattled Silicon Valley Bank (SVB) will be able to access all their cash from Monday (March 13) as it announced a series of emergency measures to restore people’s confidence in the American banking system.

The US government has said that the depositors of the embattled Silicon Valley Bank (SVB) will be able to access all their cash from Monday (March 13) as it announced a series of emergency measures to restore people’s confidence in the American banking system. The announcement came on Sunday when another bank, Signature Bank, which was on the brink of collapse in recent days, shut down. Signature’s customers will receive a similar deal, ensuring that even uninsured deposits will be returned to them Monday. Signature Bank is a New York-based regional-size lender with significant cryptocurrency exposure which was shuttered on Sunday after its stock price tanked. In a joint statement on Sunday, Treasury Secretary Janet Yellen, Federal Reserve Chair Jerome Powell and Federal Deposit Insurance Corporation Chairman Martin J Gruenberg said that the Federal Deposit Insurance Corporation will make SVB and Signature’s customers “whole”. Venture capitalists quick to abandon ship on SVB With this move, the government has guaranteed to keep all deposits– even the uninsured money that customers kept with the failed banks – safe. It aims to prevent more bank runs and to help companies that deposited large sums with the banks to continue to make payroll and fund their operations, reports CNN. The FDIC guarantees deposits, but only up to $250,000 per client and per bank. Also read | Silicon Valley Bank paid out annual bonuses to US employees just hours before seizure: Report Moreover, the Fed announced it would make extra funding available to banks to help them meet the needs of depositors, which would include withdrawals. Also read | Did Silicon Valley Bank hoodwink everyone before its collapse? "We are taking decisive actions to protect the US economy by strengthening public confidence in our banking system," the agencies said in their joint statement. "The US banking system remains resilient and on a solid foundation… Those reforms combined with today's actions demonstrate our commitment to take the necessary steps to ensure that depositors' savings remain safe." (With inputs from agencies) WATCH WION LIVE HERE

US govt says SVB customers can access deposits as second lender Signature Bank fails

President Joe Biden on Monday reassured Americans that their banking system is secure in the wake of the collapse of SVB and said he wants tougher regulations to prevent future crises.

U.S. banking safe, taxpayers won't be burden: Joe Biden

Israeli Prime Minister Benjamin Netanyahu said that the government would assess the effect of Silicon Valley Bank's collapse on Israeli companies and determine whether or not to assist them.

Israel to weigh action after Silicon Valley Bank collapse

SVB's implosion represents the largest bank failure since Washington Mutual in 2008 and the second largest failure ever for a US retail bank. Watch the video to know more.

U.S. regulators rush to contain SVB fallout, as a second bank fails

HSBC has released a statement saying it is set to buy the United Kingdom arm of Silicon Valley Bank for £1. The move secures the deposits of over 3,000 SVB UK customers with deposits of more than $US8.1 billion. SVB UK has loans of around $US6.7 billion.

HSBC acquires the UK arm of Silicon Valley Bank | WION Dispatch

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<p>Santa Clara, California-headquartered Silicon Valley Bank (SVB), the 16th largest bank in the USA collapsed last week on Friday. The closure of the bank has left the Indian startup ecosystem worried and profusely sweating about their future.&nbsp;</p>

<p>SVB was one of the largest vendors in the startup ecosystem, providing funding to up-and-coming enterprises. For several years, Indian startups had SVB as their preferred choice of banking, primarily due to the absence of regulatory hassle and flexibility in the payment system.&nbsp;</p>

<p>Many Indian startups that did not even employ a single person or had an office in the US also opened up accounts in the bank. However, the abrupt closure has left question marks over how the next month's salaries for the employees or the next round of funding will come for their startup.&nbsp;</p>

<p>Startup companies related to Y Combinator (YC) are staring at a bleak future. YC is an American tech startup accelerator that has helped launch thousands of startups over the years.&nbsp;</p>

<p><a href="https://www.wionews.com/business-economy/did-silicon-valley-bank-hoodwink-everyone-before-its-collapse-571111" target="_blank"><strong>ALSO READ | Did Silicon Valley Bank hoodwink everyone before its collapse?</strong></a></p>

<p>According to an ET report, at least 40 YC-backed Indian startups have&nbsp;parked between $250,000 to $1 million in SVB ban accounts while over 20 have deposits of more than $1 million.&nbsp;</p>

<p>The Indian government has smelled the coffee and jumped into action. Union Minister of State for IT Rajeev Chandrasekhar on Sunday said he will be meeting Indian startups later this week to take their pulse and ensure any adverse effect is avoided.&nbsp;</p>

<p>"The @SVB_Financial closure is certainly disrupting startups across (the) world. Startups are an imp part of #NewIndia Economy. I will meet wth Indian Startups this week to understand impact on thm n how @narendramodi govt can help durng this crisis," tweeted the minister.</p>

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<p dir="ltr" lang="en">The <a href="https://twitter.com/SVB_Financial?ref_src=twsrc%5Etfw">@SVB_Financial</a> closure is certainly disrupting startups across world .<br />
<br />
Startups are an imp part of <a href="https://twitter.com/hashtag/NewIndia?src=hash&amp;ref_src=twsrc%5Etfw">#NewIndia</a> Economy.<br />
<br />
I will meet wth Indian Startups this week to understand impact on thm n how <a href="https://twitter.com/narendramodi?ref_src=twsrc%5Etfw">@narendramodi</a> govt can help durng this crisis.<a href="https://twitter.com/hashtag/IndiaTechade?src=hash&amp;ref_src=twsrc%5Etfw">#IndiaTechade</a> <a href="https://twitter.com/PMOIndia?ref_src=twsrc%5Etfw">@PMOIndia</a> <a href="https://t.co/1HLTwAs9IF">pic.twitter.com/1HLTwAs9IF</a></p>
— Rajeev Chandrasekhar 🇮🇳 (@Rajeev_GoI) <a href="https://twitter.com/Rajeev_GoI/status/1634767477451403264?ref_src=twsrc%5Etfw">March 12, 2023</a></blockquote>
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<p><a href="https://www.wionews.com/videos/silicon-valley-bank-collapses-in-americas-biggest-banking-failure-since-2008-570853"><strong>WATCH |&nbsp;Silicon Valley Bank collapses in America's biggest banking failure since 2008</strong></a></p>

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<p>SVB collapsed on Friday after regulators came down charging and seized control of the assets after it failed to meet the withdrawal demands of the investors.&nbsp;</p>

<p>According to Federal Deposit Insurance Corporation (FDIC), as of December 31, 2022, SVB had total assets amounting to $209 billion and approximately $175.4 billion in total deposits.&nbsp;</p>

<p>According to reports, FDIC insurance means that any amount up to&nbsp;$250,000 in an SVB account&nbsp;will be fully covered and the startups may get it back. However, for anything above the $250,000 range, the startups or individuals may only get 80 cents to 90 cents for each dollar.&nbsp;</p>

<p><a href="https://www.wionews.com/business-economy/explained-how-silicon-valley-bank-crisis-unfolded-in-48-hours-570945" target="_blank"><strong>ALSO READ | Explained | How Silicon Valley Bank crisis unfolded in 48 hours</strong></a></p>

<p><em>(With inputs from agencies)</em></p>

<p><strong>WATCH WION LIVE HERE:&nbsp;</strong></p>

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Santa Clara, California-headquartered Silicon Valley Bank (SVB), the 16th largest bank in the USA collapsed last week on Friday. The closure of the bank has left the Indian startup ecosystem worried and profusely sweating about their future.

Santa Clara, California-headquartered Silicon Valley Bank (SVB), the 16th largest bank in the USA collapsed last week on Friday. The closure of the bank has left the Indian startup ecosystem worried and profusely sweating about their future. SVB was one of the largest vendors in the startup ecosystem, providing funding to up-and-coming enterprises. For several years, Indian startups had SVB as their preferred choice of banking, primarily due to the absence of regulatory hassle and flexibility in the payment system. Many Indian startups that did not even employ a single person or had an office in the US also opened up accounts in the bank. However, the abrupt closure has left question marks over how the next month's salaries for the employees or the next round of funding will come for their startup. Startup companies related to Y Combinator (YC) are staring at a bleak future. YC is an American tech startup accelerator that has helped launch thousands of startups over the years. ALSO READ | Did Silicon Valley Bank hoodwink everyone before its collapse? According to an ET report, at least 40 YC-backed Indian startups have parked between $250,000 to $1 million in SVB ban accounts while over 20 have deposits of more than $1 million. The Indian government has smelled the coffee and jumped into action. Union Minister of State for IT Rajeev Chandrasekhar on Sunday said he will be meeting Indian startups later this week to take their pulse and ensure any adverse effect is avoided. "The @SVB_Financial closure is certainly disrupting startups across (the) world. Startups are an imp part of #NewIndia Economy. I will meet wth Indian Startups this week to understand impact on thm n how @narendramodi govt can help durng this crisis," tweeted the minister. The @SVB_Financial closure is certainly disrupting startups across world . Startups are an imp part of #NewIndia Economy. I will meet wth Indian Startups this week to understand impact on thm n how @narendramodi govt can help durng this crisis.#IndiaTechade @PMOIndia pic.twitter.com/1HLTwAs9IF — Rajeev Chandrasekhar 🇮🇳 (@Rajeev_GoI) March 12, 2023 × WATCH | Silicon Valley Bank collapses in America's biggest banking failure since 2008 SVB collapsed on Friday after regulators came down charging and seized control of the assets after it failed to meet the withdrawal demands of the investors. According to Federal Deposit Insurance Corporation (FDIC), as of December 31, 2022, SVB had total assets amounting to $209 billion and approximately $175.4 billion in total deposits. According to reports, FDIC insurance means that any amount up to $250,000 in an SVB account will be fully covered and the startups may get it back. However, for anything above the $250,000 range, the startups or individuals may only get 80 cents to 90 cents for each dollar. ALSO READ | Explained | How Silicon Valley Bank crisis unfolded in 48 hours (With inputs from agencies) WATCH WION LIVE HERE:

Indian startups sweat as millions of dollars remain stuck in Silicon Valley Bank accounts

<p>HSBC Holdings on Monday said that it is acquiring&nbsp;the UK arm of the collapsed Silicon Valley Bank (SVB) for one pound through a private sale that was brokered by the Bank of England and the British government.</p>

<p>"Silicon Valley Bank (UK) Ltd has today been sold to HSBC... Customers of SVB UK will be able to access their deposits and banking services as normal from today," said a Treasury statement, adding that the deal involved no taxpayer support.</p>

<p>In a statement, HSBC said that the transaction “completes immediately”, adding that the acquisition will be funded from existing resources.</p>

<p>“As at 10 March 2023, SVB UK had loans of around £5.5bn and deposits of around £6.7bn. For the financial year ending 31 December 2022, SVB UK recorded a profit before tax of £88m. SVB UK’s tangible equity is expected to be around £1.4bn. Final calculation of the gain arising from the acquisition will be provided in due course,” the bank said.</p>

<p>The deal followed intense overnight bidding for SVB UK, with its chief executive Noel Quinn involved in frantic talks with Prime Minister Rishi Sunak, who is currently in California for a defence summit with the leaders of Australia and the US.</p>

<h2><strong>Silicon Valley Bank staff offered 45 days of work at 1.5 times pay</strong></h2>

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<p>According to Sky News, JP Morgan, Barclays, and Lloyds Banking Group were among the large international banks that were asked to consider participating in the pre-insolvency sale process. A&nbsp;Middle Eastern buyer was also said to be one of the leading bidders.</p>

<p><strong>Also read |&nbsp;</strong><a href="https://www.wionews.com/business-economy/us-govt-says-svb-customers-can-access-their-money-as-second-bank-fails-571313">US govt says SVB customers can access deposits as second lender Signature Bank fails</a></p>

<p>According to the Financial Times newspaper, SVB UK has 3,300 domestic clients, including start-ups, venture-backed companies and funds. Though many have deposits under the £85,000 threshold covered by the financial insurance scheme.</p>

<p><strong>Also read |&nbsp;</strong><a href="https://www.wionews.com/business-economy/silicon-valley-bank-paid-out-annual-bonuses-to-employees-hours-before-seizure-report-571101">Silicon Valley Bank paid out annual bonuses to US employees just hours before seizure: Report</a></p>

<p>The announcement comes hours after the US government assured to protect the money of depositors, even the uninsured ones, as it races to find potential bidders to acquire the US unit of the SVB.</p>

<p>The US government said that the depositors will be able to access all their cash from Monday (March 13) as it announced a series of emergency measures to restore people’s confidence in the American banking system.</p>

<p>(With inputs from agencies)</p>

<p><strong>WATCH WION LIVE HERE</strong></p>

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HSBC Holdings on Monday said that it is acquiring the UK arm of the collapsed Silicon Valley Bank (SVB) for one pound through a private sale that was brokered by the Bank of England and the British government.

HSBC Holdings on Monday said that it is acquiring the UK arm of the collapsed Silicon Valley Bank (SVB) for one pound through a private sale that was brokered by the Bank of England and the British government. "Silicon Valley Bank (UK) Ltd has today been sold to HSBC... Customers of SVB UK will be able to access their deposits and banking services as normal from today," said a Treasury statement, adding that the deal involved no taxpayer support. In a statement, HSBC said that the transaction “completes immediately”, adding that the acquisition will be funded from existing resources. “As at 10 March 2023, SVB UK had loans of around £5.5bn and deposits of around £6.7bn. For the financial year ending 31 December 2022, SVB UK recorded a profit before tax of £88m. SVB UK’s tangible equity is expected to be around £1.4bn. Final calculation of the gain arising from the acquisition will be provided in due course,” the bank said. The deal followed intense overnight bidding for SVB UK, with its chief executive Noel Quinn involved in frantic talks with Prime Minister Rishi Sunak, who is currently in California for a defence summit with the leaders of Australia and the US. Silicon Valley Bank staff offered 45 days of work at 1.5 times pay According to Sky News, JP Morgan, Barclays, and Lloyds Banking Group were among the large international banks that were asked to consider participating in the pre-insolvency sale process. A Middle Eastern buyer was also said to be one of the leading bidders. Also read | US govt says SVB customers can access deposits as second lender Signature Bank fails According to the Financial Times newspaper, SVB UK has 3,300 domestic clients, including start-ups, venture-backed companies and funds. Though many have deposits under the £85,000 threshold covered by the financial insurance scheme. Also read | Silicon Valley Bank paid out annual bonuses to US employees just hours before seizure: Report The announcement comes hours after the US government assured to protect the money of depositors, even the uninsured ones, as it races to find potential bidders to acquire the US unit of the SVB. The US government said that the depositors will be able to access all their cash from Monday (March 13) as it announced a series of emergency measures to restore people’s confidence in the American banking system. (With inputs from agencies) WATCH WION LIVE HERE

Silicon Valley Bank: HSBC to acquire lender's UK arm for one pound

HSBC (HSBC) said Monday its ring-fenced subsidiary HSBC UK Bank will acquire the British unit of failed lender Silicon Valley Bank, owned by SVB Financial (NASDAQ:SIVB), for £1.

Silicon Valley Bank collapse gives Indian startups jitters

<p>US Treasury Secretary Janet Yellen on Sunday (March 12) ruled out a government bailout for the collapsed Silicon Valley Bank (SVB). She said a bailout for the bank was out of the question but noted the government wanted to avoid a financial "contagion" from implosion of the bank.</p>

<p>She emphasised that the situation was much different from the financial crisis 15 years ago, which led to bank bailouts to protect the industry.</p>

<p>"We want to make sure that the troubles that exist at one bank don't create contagion to others that are sound," Yellen said during an interview with CBS.&nbsp;</p>

<p>Meanwhile, Bloomberg reported that Federal Deposit Insurance Corp (FDIC) kicked off SVB auction late Saturday. According to the report, the winner may not be known till late on Sunday (local time).</p>

<p><strong>Reports: SVB employees siphoned annual bonuses before collapse</strong></p>

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<p>On Friday, US regulators pulled the plug on SVB -- a key lender to US start-ups since the 1980s -- after a run on deposits made it no longer tenable for the medium-sized bank to stay afloat on its own.</p>

<p>Yellen said reforms made after the 2008 financial crisis meant the government was not considering a bailout for SVB.&nbsp;</p>

<p>"During the financial crisis, there were investors and owners of systemic large banks that were bailed out... and the reforms that have been put in place means that we're not going to do that again," she said.</p>

<p>"But we are concerned about depositors and focused on trying to meet their needs."</p>

<p><strong>Explained | <a href="https://www.wionews.com/business-economy/explained-how-silicon-valley-bank-crisis-unfolded-in-48-hours-570945">How Silicon Valley Bank crisis unfolded in 48 hours</a></strong></p>

<p>Following SVB's disclosure on Wednesday, the banking sector was punished by investors. The sector slumped 30 per cent in two sessions on Friday. Signature Bank, a cryptocurrency-exposed lender, lost a third of its value since Wednesday evening.</p>

<p><strong>Read | <a href="https://www.wionews.com/business-economy/did-silicon-valley-bank-hoodwink-everyone-before-its-collapse-571111">Did Silicon Valley Bank hoodwink everyone before its collapse?</a></strong></p>

<p>Yellen said on Sunday that the government was working with the US deposit guarantee agency, the FDIC, on a "resolution" of the situation at SVB, where approximately 96 per cent of deposits are not covered by the FDIC's reimbursement guarantee.</p>

<p>"I'm sure they (the FDIC) are considering a wide range of available options that include acquisitions," she said.</p>

<p><em>(With inputs from agencies)</em></p>

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US Treasury Secretary Janet Yellen on Sunday (March 12) ruled out a government bailout for the collapsed Silicon Valley Bank (SVB). She said a bailout for the bank was out of the question but noted the government wanted to avoid a financial "contagion" from implosion of the bank.

US Treasury Secretary Janet Yellen on Sunday (March 12) ruled out a government bailout for the collapsed Silicon Valley Bank (SVB). She said a bailout for the bank was out of the question but noted the government wanted to avoid a financial "contagion" from implosion of the bank. She emphasised that the situation was much different from the financial crisis 15 years ago, which led to bank bailouts to protect the industry. "We want to make sure that the troubles that exist at one bank don't create contagion to others that are sound," Yellen said during an interview with CBS. Meanwhile, Bloomberg reported that Federal Deposit Insurance Corp (FDIC) kicked off SVB auction late Saturday. According to the report, the winner may not be known till late on Sunday (local time). Reports: SVB employees siphoned annual bonuses before collapse × On Friday, US regulators pulled the plug on SVB -- a key lender to US start-ups since the 1980s -- after a run on deposits made it no longer tenable for the medium-sized bank to stay afloat on its own. Yellen said reforms made after the 2008 financial crisis meant the government was not considering a bailout for SVB. "During the financial crisis, there were investors and owners of systemic large banks that were bailed out... and the reforms that have been put in place means that we're not going to do that again," she said. "But we are concerned about depositors and focused on trying to meet their needs." Explained | How Silicon Valley Bank crisis unfolded in 48 hours Following SVB's disclosure on Wednesday, the banking sector was punished by investors. The sector slumped 30 per cent in two sessions on Friday. Signature Bank, a cryptocurrency-exposed lender, lost a third of its value since Wednesday evening. Read | Did Silicon Valley Bank hoodwink everyone before its collapse? Yellen said on Sunday that the government was working with the US deposit guarantee agency, the FDIC, on a "resolution" of the situation at SVB, where approximately 96 per cent of deposits are not covered by the FDIC's reimbursement guarantee. "I'm sure they (the FDIC) are considering a wide range of available options that include acquisitions," she said. (With inputs from agencies) You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. WATCH WION LIVE HERE ×

US rules out bailout for Silicon Valley Bank, auction reportedly underway

After the U.S. regulators pulled the plug on Silicon Valley Bank, the Federal Deposit Insurance Corporation (FDIC) was called to take over the institution and hand over the sale of its assets. Employees of the fallen bank has been offered 45 days of employment at one and a half times their previous salary.

U.S.: Largest collapse of financial institution since 2008 crisis; Musk open to buying SVB

U.S.: America's biggest banking failure since 2008 as U.S. regulators pull plug on SVB

U.S. regulators pull plug on SVB; FDIC offers 45 days of work to employees

After the U.S. regulators pulled the plug on Silicon Valley Bank, the Federal Deposit Insurance Corporation (FDIC) was called to take over the institution and hand over the sale of its assets. Employees of the fallen bank have been offered 45 days of employment at one and a half times their previous salary.

Capitalists pull money out of SVB before fallout

<p>The Silicon Valley Bank (SVB) paid out annual bonuses to eligible American employees on Friday (March 10), just hours before the bank was seized by the Joe Biden administration. According to a report by the Axios on Saturday, the bonuses were for the work done last year and were previously scheduled to be disbursed on Friday. However, the day coincided with the bank's takeover by the Federal Deposit Insurance Corporation (FDIC).</p>

<p>Bonuses&nbsp;for employees in some other countries were scheduled for later in the month, and haven't been paid.&nbsp;</p>

<p>The Axios report said that an unknown number of SVB employees were emailed by the FDIC on Friday, offering them employment with the remnant organisation for the next 45 days. These employees would be compensated 1.5 times their normal salaries. On the other hand, hourly workers would receive 2 times their normal wages for overtime.</p>

<p><strong>ALSO READ | <a href="https://www.wionews.com/business-economy/explained-how-silicon-valley-bank-crisis-unfolded-in-48-hours-570945">Explained: How Silicon Valley Bank crisis unfolded in 48 hours</a></strong></p>

<p>Speaking to the news website, a spokesperson from the insurance corporation said, "Without commenting on salaries, it’s our standard practice to ask retain [sic] bank employees to assist with an orderly transition as part of our resolution process."</p>

<p>On Friday, American authorities swooped in and seized the assets of the SVB, which had been a key lender to US startups since the 1980s, after a run on deposits made it no longer tenable for the bank to stay afloat on its own.&nbsp;</p>

<p>Given the bank's sudden collapse, US Treasury Secretary Janet Yellen convened an emergency meeting of the country's top banking regulators. Yellen expressed full confidence in banking regulators to take appropriate actions in response and noted that the banking system remained resilient and regulators have effective tools to address this type of event, a statement from the Treasury department said.&nbsp;</p>

<p>The collapse of the bank has left markets jittery over a potential sign of widespread turmoil. However, analysts only see a limited risk of financial contagion.&nbsp;</p>

<p>CFRA Research's Ken Leon said that the SVB's woes were the result of "idiosyncratic stresses and not one that we see as systemic that would affect the banking industry." Leon said that stricter US regulations enacted after the 2008 financial crisis have helped contain trouble, the news agency AFP reported on Saturday.&nbsp;</p>

<p>Analysts at Morgan Stanley, meanwhile said, "We want to be very clear here...we do not believe there is a liquidity crunch facing the banking industry, and most banks in our coverage have ample access to liquidity."<br />
<br />
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The Silicon Valley Bank (SVB) paid out annual bonuses to eligible American employees on Friday (March 10), just hours before the bank was seized by the Joe Biden administration.

The Silicon Valley Bank (SVB) paid out annual bonuses to eligible American employees on Friday (March 10), just hours before the bank was seized by the Joe Biden administration. According to a report by the Axios on Saturday, the bonuses were for the work done last year and were previously scheduled to be disbursed on Friday. However, the day coincided with the bank's takeover by the Federal Deposit Insurance Corporation (FDIC). Bonuses for employees in some other countries were scheduled for later in the month, and haven't been paid. The Axios report said that an unknown number of SVB employees were emailed by the FDIC on Friday, offering them employment with the remnant organisation for the next 45 days. These employees would be compensated 1.5 times their normal salaries. On the other hand, hourly workers would receive 2 times their normal wages for overtime. ALSO READ | Explained: How Silicon Valley Bank crisis unfolded in 48 hours Speaking to the news website, a spokesperson from the insurance corporation said, "Without commenting on salaries, it’s our standard practice to ask retain [sic] bank employees to assist with an orderly transition as part of our resolution process." On Friday, American authorities swooped in and seized the assets of the SVB, which had been a key lender to US startups since the 1980s, after a run on deposits made it no longer tenable for the bank to stay afloat on its own. Given the bank's sudden collapse, US Treasury Secretary Janet Yellen convened an emergency meeting of the country's top banking regulators. Yellen expressed full confidence in banking regulators to take appropriate actions in response and noted that the banking system remained resilient and regulators have effective tools to address this type of event, a statement from the Treasury department said. The collapse of the bank has left markets jittery over a potential sign of widespread turmoil. However, analysts only see a limited risk of financial contagion. CFRA Research's Ken Leon said that the SVB's woes were the result of "idiosyncratic stresses and not one that we see as systemic that would affect the banking industry." Leon said that stricter US regulations enacted after the 2008 financial crisis have helped contain trouble, the news agency AFP reported on Saturday. Analysts at Morgan Stanley, meanwhile said, "We want to be very clear here...we do not believe there is a liquidity crunch facing the banking industry, and most banks in our coverage have ample access to liquidity." WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Silicon Valley Bank paid out annual bonuses to US employees just hours before seizure: Report

<p>In what comes as the&nbsp;largest US bank failure since the 2008 financial crisis, Santa Clara-headquartered Silicon Valley Bank (SVB) collapsed on Friday. The expedited nature of its collapse has raised serious concerns&nbsp;with many accusing the company of hoodwinking the depositors, despite knowing that its inevitable fall was around.&nbsp;</p>

<p>Days before SVB collapsed, the bank posted a self-congratulatory tweet where Forbes magazine had named it in the list of 'America's Best Banks' while also adding it to the Financial All-Stars list.&nbsp;</p>

<p>"Proud to be on @Forbes' annual ranking of America's Best Banks for the 5th straight year and to have also been named to the publication's inaugural Financial All-Stars list," read the tweet which is still up.&nbsp;</p>

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<p dir="ltr" lang="en">Proud to be on <a href="https://twitter.com/Forbes?ref_src=twsrc%5Etfw">@Forbes</a>' annual ranking of America's Best Banks for the 5th straight year and to have also been named to the publication's inaugural Financial All-Stars list.<br />
<br />
👉 <a href="https://t.co/rEmfOSTT4f">https://t.co/rEmfOSTT4f</a> <a href="https://t.co/NFWlPJUbh5">pic.twitter.com/NFWlPJUbh5</a></p>
— SVB (@SVB_Financial) <a href="https://twitter.com/SVB_Financial/status/1632818336391213059?ref_src=twsrc%5Etfw">March 6, 2023</a></blockquote>
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<p>The tweet by SVB can be clubbed in the same league as the tweets that aged like milk,&nbsp;with the infamous tweet by World Health Organization citing&nbsp;COVID-19 did not spread through human contact taking the top spot.&nbsp;</p>

<p>Five days after SVB posted the boastful tweet, the regulators came down charging and seized control of its assets after it failed to meet the withdrawal demands of the investors.&nbsp;</p>

<h2><strong>SVB executives sell their shares</strong></h2>

<p>US media has reported that prior to the collapse, senior executives at SVB sold a significant portion of their shares.</p>

<p>CEO Gregory Becker sold 11 per cent of his shares last month while Daniel Beck, CFO, Michelle Draper, CMO and Michael Zucker, general counsel sold as much as 32 per cent, 25 per cent and 19 per cent shares respectively.&nbsp;</p>

<h2><strong>SVB paid bonuses to US employees</strong></h2>

<p>Additionally, hours before going bust, SVB paid out annual bonuses to its US employees, according to multiple news sources. The payments were made for the work done in 2022.&nbsp;</p>

<p>Though the size of payouts could not be confirmed, a CNBC report estimated the bonus to be in the&nbsp;$12,000-$140,000 range for associates and managing directors respectively.&nbsp;</p>

<p><a href="https://www.wionews.com/videos/silicon-valley-bank-collapses-in-americas-biggest-banking-failure-since-2008-570853"><strong>WATCH |&nbsp;Silicon Valley Bank collapses in America's biggest banking failure since 2008</strong></a></p>

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<h2><strong>Hiring&nbsp;'financial crimes' senior manager</strong></h2>

<p>Another report states that the bank posted a job listing for Senior Manager, Financial Crimes on Friday, just before it was shut down.&nbsp;</p>

<p>"This position within Client [Bank Secrecy Act] Risk assesses Prospective client [Bank Secrecy Act]/[Anti-Money Laundering] risks pre-onboarding to approve or decline the Prospect as well as review Clients who may pivot during their relationship and require approval throughout the client’s relationship," read the job description.&nbsp;</p>

<h2><strong>VC firms pulling out their funds</strong></h2>

<p>A day before the fall, billionaire Peter Thiel's Founders Fund — a venture capital firm had withdrawn nearly all of its money from the bank, smelling the coffee.&nbsp;</p>

<p>Following the withdrawals, the fund&nbsp;no longer had any exposure to SVB. According to reports, the company had run into problems using SVB's services. Apart from Founders Fund,&nbsp;Coatue Management, and Union Square Ventures were the other VC firms that managed to avoid exposure to the bank.</p>

<p><a href="https://www.wionews.com/business-economy/explained-how-silicon-valley-bank-crisis-unfolded-in-48-hours-570945" target="_blank"><strong>Explained | How Silicon Valley Bank crisis unfolded in 48 hours</strong></a></p>

<p>However, the ordinary customers were not so lucky. Images and videos have gone viral on social media platforms which show anxious customers lining up outside the bank branches in long queues, waiting to withdraw their precious savings.&nbsp;</p>

<p>The videos captured drew eerie similarities to the Great Depression of the 1930s when people had to line up similarly to receive their own money.&nbsp;</p>

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<p dir="ltr" lang="en">US regulators have Shut Down Silicon Valley Bank (SVB) and taken control of its ‘Customer Deposits’ in the largest failure of a US Bank since 2008.<br />
<br />
Massive line forms outside Silicon Valley Bank as Customers Panic 👀 <a href="https://t.co/zA7BJ3h6Vy">pic.twitter.com/zA7BJ3h6Vy</a></p>
— khafi martinaz (@usera49) <a href="https://twitter.com/usera49/status/1634358531485835266?ref_src=twsrc%5Etfw">March 11, 2023</a></blockquote>
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<p>Though Federal Deposit Insurance Corporation, or FDIC has assured it has access to $175 billion of the bank's customer deposits and that depositors will get hands over their insured amounts — there is still palpable anxiety.&nbsp;</p>

<p>The fact that big VC companies which have no dearth of money managed to save their funds while the ordinary public suffered, seems to suggest&nbsp;that something was fishy.&nbsp;</p>

<p><em>(With inputs from agencies)</em><br />
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In what comes as the largest US bank failure since the 2008 financial crisis, Santa Clara-headquartered Silicon Valley Bank (SVB) collapsed on Friday. The expedited nature of its collapse has raised serious concerns with many accusing the company of hoodwinking the depositors, despite knowing that its inevitable fall was around.

In what comes as the largest US bank failure since the 2008 financial crisis, Santa Clara-headquartered Silicon Valley Bank (SVB) collapsed on Friday. The expedited nature of its collapse has raised serious concerns with many accusing the company of hoodwinking the depositors, despite knowing that its inevitable fall was around. Days before SVB collapsed, the bank posted a self-congratulatory tweet where Forbes magazine had named it in the list of 'America's Best Banks' while also adding it to the Financial All-Stars list. "Proud to be on @Forbes' annual ranking of America's Best Banks for the 5th straight year and to have also been named to the publication's inaugural Financial All-Stars list," read the tweet which is still up. Proud to be on @Forbes' annual ranking of America's Best Banks for the 5th straight year and to have also been named to the publication's inaugural Financial All-Stars list. 👉 https://t.co/rEmfOSTT4f pic.twitter.com/NFWlPJUbh5 — SVB (@SVB_Financial) March 6, 2023 × The tweet by SVB can be clubbed in the same league as the tweets that aged like milk, with the infamous tweet by World Health Organization citing COVID-19 did not spread through human contact taking the top spot. Five days after SVB posted the boastful tweet, the regulators came down charging and seized control of its assets after it failed to meet the withdrawal demands of the investors. SVB executives sell their shares US media has reported that prior to the collapse, senior executives at SVB sold a significant portion of their shares. CEO Gregory Becker sold 11 per cent of his shares last month while Daniel Beck, CFO, Michelle Draper, CMO and Michael Zucker, general counsel sold as much as 32 per cent, 25 per cent and 19 per cent shares respectively. SVB paid bonuses to US employees Additionally, hours before going bust, SVB paid out annual bonuses to its US employees, according to multiple news sources. The payments were made for the work done in 2022. Though the size of payouts could not be confirmed, a CNBC report estimated the bonus to be in the $12,000-$140,000 range for associates and managing directors respectively. WATCH | Silicon Valley Bank collapses in America's biggest banking failure since 2008 Hiring 'financial crimes' senior manager Another report states that the bank posted a job listing for Senior Manager, Financial Crimes on Friday, just before it was shut down. "This position within Client [Bank Secrecy Act] Risk assesses Prospective client [Bank Secrecy Act]/[Anti-Money Laundering] risks pre-onboarding to approve or decline the Prospect as well as review Clients who may pivot during their relationship and require approval throughout the client’s relationship," read the job description. VC firms pulling out their funds A day before the fall, billionaire Peter Thiel's Founders Fund — a venture capital firm had withdrawn nearly all of its money from the bank, smelling the coffee. Following the withdrawals, the fund no longer had any exposure to SVB. According to reports, the company had run into problems using SVB's services. Apart from Founders Fund, Coatue Management, and Union Square Ventures were the other VC firms that managed to avoid exposure to the bank. Explained | How Silicon Valley Bank crisis unfolded in 48 hours However, the ordinary customers were not so lucky. Images and videos have gone viral on social media platforms which show anxious customers lining up outside the bank branches in long queues, waiting to withdraw their precious savings. The videos captured drew eerie similarities to the Great Depression of the 1930s when people had to line up similarly to receive their own money. US regulators have Shut Down Silicon Valley Bank (SVB) and taken control of its ‘Customer Deposits’ in the largest failure of a US Bank since 2008. Massive line forms outside Silicon Valley Bank as Customers Panic 👀 pic.twitter.com/zA7BJ3h6Vy — khafi martinaz (@usera49) March 11, 2023 × Though Federal Deposit Insurance Corporation, or FDIC has assured it has access to $175 billion of the bank's customer deposits and that depositors will get hands over their insured amounts — there is still palpable anxiety. The fact that big VC companies which have no dearth of money managed to save their funds while the ordinary public suffered, seems to suggest that something was fishy. (With inputs from agencies) WATCH WION LIVE HERE:

Did Silicon Valley Bank hoodwink everyone before its collapse?

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<p>USD Coin (USDC), a stablecoin and the world's fifth-biggest cryptocurrency slumped to an all-time low on Saturday after it was revealed that Circle, the US-based firm operating the coin had invested $3.3 billion of its reserves in the now-collapsed Silicon Valley Bank (SVB).&nbsp;</p>

<p>USDC is a stablecoin, meaning its price is pegged to a reserve asset and in this case, the US dollar. However, after the revelation, the stablecoin broke its 1:1 dollar peg and fell as low as $0.87, before recovering to $0.90 at the end of the day.&nbsp;</p>

<p>According to a statement released by Circle, $3.3 billion of USDC's $40 billion reserves are held at the SVB.&nbsp;</p>

<p>"Following the confirmation at the end of today that the wires initiated on Thursday to remove balances were not yet processed, $3.3 billion of the ~$40 billion of USDC reserves remain at SVB," the company said in a tweet.&nbsp;</p>

<p>"Like other customers and depositors who relied on SVB for banking services, Circle joins calls for continuity of this important bank in the U.S. economy and will follow guidance provided by state and Federal regulators."</p>

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<p dir="ltr" lang="en">1/ Following the confirmation at the end of today that the wires initiated on Thursday to remove balances were not yet processed, $3.3 billion of the ~$40 billion of USDC reserves remain at SVB.</p>
— Circle (@circle) <a href="https://twitter.com/circle/status/1634391505988206592?ref_src=twsrc%5Etfw">March 11, 2023</a></blockquote>
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<p><a href="https://www.wionews.com/business-economy/silicon-valley-bank-crisis-what-led-to-stock-crash-whats-next-heres-everything-you-need-to-know-570568" target="_blank"><strong>Read more: Silicon Valley Bank crisis: What led to stock crash &amp; what's next. Here's everything you need to know</strong></a></p>

<p>Gavin Newsom, governor of California, where SVB is headquartered, released a statement in the aftermath saying&nbsp;he was in communication with the White House and monitoring the situation.&nbsp;</p>

<p>“Everyone is working with FDIC [Federal Deposit Insurance Corporation] to stabilize the situation as quickly as possible, to protect jobs, people’s livelihoods, and the entire innovation ecosystem that has served as a tent pole for our economy."</p>

<p><a href="https://www.wionews.com/videos/silicon-valley-bank-collapses-in-americas-biggest-banking-failure-since-2008-570853"><strong>WATCH |&nbsp;Silicon Valley Bank collapses in America's biggest banking failure since 2008</strong></a></p>

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<p>Notably, SVB collapsed on Friday, a mere 48 hours after the bank’s announcement, which not only led to an aggressive decline in its stock resulting in a market loss of over $80 billion but also spurred panic among depositors and clients.&nbsp;</p>

<p>It was the largest US bank failure since the 2008 financial crisis. The FDIC is now scurrying around to find another bank over the weekend that is willing to merge with SVB and stop the impending total collapse.&nbsp;</p>

<p><a href="https://www.wionews.com/business-economy/explained-how-silicon-valley-bank-crisis-unfolded-in-48-hours-570945" target="_blank"><strong>Explained | How Silicon Valley Bank crisis unfolded in 48 hours</strong></a></p>

<p><em>(With inputs from agencies)</em><br />
<br />
&nbsp;</p>

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USD Coin (USDC), a stablecoin and the world's fifth-biggest cryptocurrency slumped to an all-time low on Saturday after it was revealed that Circle, the US-based firm operating the coin had invested $3.

USD Coin (USDC), a stablecoin and the world's fifth-biggest cryptocurrency slumped to an all-time low on Saturday after it was revealed that Circle, the US-based firm operating the coin had invested $3.3 billion of its reserves in the now-collapsed Silicon Valley Bank (SVB). USDC is a stablecoin, meaning its price is pegged to a reserve asset and in this case, the US dollar. However, after the revelation, the stablecoin broke its 1:1 dollar peg and fell as low as $0.87, before recovering to $0.90 at the end of the day. According to a statement released by Circle, $3.3 billion of USDC's $40 billion reserves are held at the SVB. "Following the confirmation at the end of today that the wires initiated on Thursday to remove balances were not yet processed, $3.3 billion of the ~$40 billion of USDC reserves remain at SVB," the company said in a tweet. "Like other customers and depositors who relied on SVB for banking services, Circle joins calls for continuity of this important bank in the U.S. economy and will follow guidance provided by state and Federal regulators." 1/ Following the confirmation at the end of today that the wires initiated on Thursday to remove balances were not yet processed, $3.3 billion of the ~$40 billion of USDC reserves remain at SVB. — Circle (@circle) March 11, 2023 × Read more: Silicon Valley Bank crisis: What led to stock crash & what's next. Here's everything you need to know Gavin Newsom, governor of California, where SVB is headquartered, released a statement in the aftermath saying he was in communication with the White House and monitoring the situation. “Everyone is working with FDIC [Federal Deposit Insurance Corporation] to stabilize the situation as quickly as possible, to protect jobs, people’s livelihoods, and the entire innovation ecosystem that has served as a tent pole for our economy." WATCH | Silicon Valley Bank collapses in America's biggest banking failure since 2008 × Notably, SVB collapsed on Friday, a mere 48 hours after the bank’s announcement, which not only led to an aggressive decline in its stock resulting in a market loss of over $80 billion but also spurred panic among depositors and clients. It was the largest US bank failure since the 2008 financial crisis. The FDIC is now scurrying around to find another bank over the weekend that is willing to merge with SVB and stop the impending total collapse. Explained | How Silicon Valley Bank crisis unfolded in 48 hours (With inputs from agencies) WATCH WION LIVE HERE:

World’s fifth-biggest cryptocurrency USDC’s value falls after Silicon Valley Bank connection revealed

<p>Is he for real? Indeed, no one really knows because Elon Musk frequently tweets 'bombshells' that indicate outlandish ideas. What then did the CEO of Tesla do this time? Elon Musk, the CEO of Twitter, has said that he is open to the possibility of purchasing the defunct Silicon Valley Bank. He made these comments in response to a Tweet from Razer co-founder and CEO Min-Liang Tan. Tan recommended that Musk acquire the bank and transform it into a digital bank.</p>

<p>WATCH | <a href="https://www.wionews.com/world/watch-bizarre-is-it-raining-worms-in-china-570896">BIZARRE! Is it raining worms in China?</a></p>

<p>"I think Twitter should buy SVB and become a digital bank," he wrote on Twitter.&nbsp;In response to this, Musk wrote, "I’m open to the idea."</p>

<p><img alt="Elon Musk buying SVB" data-entity-type="file" data-entity-uuid="7cc57e42-d443-4dd7-a671-adc6afbefb24" src="//cdn.wionews.com/sites/default/files/inline-images/Elon%20Muskkk.png" /></p>

<p>His remarks rapidly gained traction online. It drew a slew of interesting reactions from netizens. One user wrote, "It would certainly kickstart Twitter as a financial institution. Perhaps?"&nbsp;</p>

<p>Another user joked, "Yeah, give him something to keep him busy. He barely has anything to do."</p>

<p>One Twitter user even went on to suggest a new name for SVB, "The Bank of Elon, Musk Bank, Bank X, Blue Bird Bank, I can keep going."&nbsp;</p>

<p>Also Read | <a href="https://www.wionews.com/india-news/1993-mumbai-blasts-30-years-on-a-scar-on-indian-city-that-still-cuts-deep-570949">1993 Mumbai blasts: 30 years on, scar of terror on Indian megacity still cuts deep</a></p>

<p>Musk, the founder of Tesla Inc. and SpaceX, acquired Twitter for $44 billion in a very contentious deal.</p>

<p>Silicon Valley Bank stated on Friday that it will be ceasing operations after the lender's statement that it would raise $2 billion in capital to cover losses sparked a significant sell-off.&nbsp;</p>

<p>Watch | <a href="https://www.wionews.com/videos/foreign-minister-bilawal-bhutto-admits-pakistan-unable-to-get-uns-attention-on-kashmir-570886">Foreign minister Bilawal Bhutto admits Pakistan unable to get UN’s attention on Kashmir</a></p>

<p>Following the bank's announcement, the crisis developed in just 48 hours. It caused an aggressive decline in its stock that resulted in a market loss of over $80 billion but also sparked panic among depositors and clients. Many startups and venture capital firms rushed to withdraw their money.=</p>

<p><strong>WATCH WION LIVE HERE</strong></p>

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<p>You can <strong>now write for wionews.com</strong> and be a part of the community. Share your stories and opinions with us <strong><a href="https://www.wionews.com/content-contribution-registration-form">here</a>.</strong></p>


Is he for real? Indeed, no one really knows because Elon Musk frequently tweets 'bombshells' that indicate outlandish ideas. What then did the CEO of Tesla do this time?

Is he for real? Indeed, no one really knows because Elon Musk frequently tweets 'bombshells' that indicate outlandish ideas. What then did the CEO of Tesla do this time? Elon Musk, the CEO of Twitter, has said that he is open to the possibility of purchasing the defunct Silicon Valley Bank. He made these comments in response to a Tweet from Razer co-founder and CEO Min-Liang Tan. Tan recommended that Musk acquire the bank and transform it into a digital bank. WATCH | BIZARRE! Is it raining worms in China? "I think Twitter should buy SVB and become a digital bank," he wrote on Twitter. In response to this, Musk wrote, "I’m open to the idea." His remarks rapidly gained traction online. It drew a slew of interesting reactions from netizens. One user wrote, "It would certainly kickstart Twitter as a financial institution. Perhaps?" Another user joked, "Yeah, give him something to keep him busy. He barely has anything to do." One Twitter user even went on to suggest a new name for SVB, "The Bank of Elon, Musk Bank, Bank X, Blue Bird Bank, I can keep going." Also Read | 1993 Mumbai blasts: 30 years on, scar of terror on Indian megacity still cuts deep Musk, the founder of Tesla Inc. and SpaceX, acquired Twitter for $44 billion in a very contentious deal. Silicon Valley Bank stated on Friday that it will be ceasing operations after the lender's statement that it would raise $2 billion in capital to cover losses sparked a significant sell-off. Watch | Foreign minister Bilawal Bhutto admits Pakistan unable to get UN’s attention on Kashmir Following the bank's announcement, the crisis developed in just 48 hours. It caused an aggressive decline in its stock that resulted in a market loss of over $80 billion but also sparked panic among depositors and clients. Many startups and venture capital firms rushed to withdraw their money.= WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

For real? Tesla CEO Elon Musk teases buying collapsed Silicon Valley Bank

SVB is the largest retail bank to fail since 2008. U.S. regulators shuttered Silicon Valley Bank (SVB) on Friday and took control of its deposits, in what amounts to the biggest retail banking failure since the global financial crisis.

Silicon Valley Bank collapses in America's biggest banking failure since 2008

<p>US regulators have taken control over the Silicon Valley Bank (SVB) after it was shut down, marking the largest retail bank failure since the 2008 financial crisis.&nbsp;</p>

<p>The Federal Deposit Insurance Corporation (FDIC) on Friday announced that it has taken control of the customer deposits of the lender which are roughly around $175 billion. The regulator typically protects deposits of up to $250,000.</p>

<p>The bank primarily served technology workers and venture capital-backed companies, including some of the industry’s best-known brands.</p>

<p>The move came as the SVB was scrambling to raise money to plug a loss from the sale of assets affected by the Federal Reserve’s interest rate hikes.</p>

<p>The quick jump in interest rates meant that securities they had bought were selling for significantly less.&nbsp;</p>

<p>This sparked a rush of customer withdrawals amidst fears about the state of the banking sector.</p>

<p>The US regulator said they acted to "protect insured depositors" and that the bank offices would reopen and clients with insured deposits would have access to funds "no later than Monday morning". It added that money raised from selling the bank's assets would go to uninsured depositors.</p>

<h2><strong>Gravitas: Italy exposes China’s underground banking network</strong></h2>

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<p>Meanwhile, the chief executive officer of Silicon Valley Bank, Greg Becker, in a video message to the employees acknowledged the "incredibly difficult" 48 hours leading up to its collapse on Friday.</p>

<p>"It's with an incredibly heavy heart that I'm here to deliver&nbsp;this message," he said in the video seen by Reuters.</p>

<p><strong>Also read |</strong>&nbsp;<a href="https://www.wionews.com/world/hamburg-shooting-police-were-tipped-off-about-gunmans-mental-health-weeks-before-attack-570772">Hamburg shooting: Police were tipped off about gunman's mental health</a></p>

<p>The CEO said that he is cooperating with banking regulators to find a partner for the bank, but added that there is "no guarantee" that a deal will be struck.</p>

<p>According to the bank’s website, nearly half of the US technology and healthcare companies that went public last year after getting early funding from venture capital firms were Silicon Valley Bank customers.</p>

<p>It also boasted of its connections to leading tech companies such as Shopify, ZipRecruiter and one of the top venture capital firms, Andreesson Horowitz.</p>

<h2><strong>Markets collapse</strong></h2>

<p>The collapse of SVB hooked the global markets on Friday as banking shares across US, EU and UK were in red.</p>

<p>In the United States, First Republic Bank was among the hard-hit banks whose shares&nbsp; slumped 14.8 per cent, and Comerica, which slipped five per cent.</p>

<p>Larger banks like JPMorgan Chase and Bank of America had a mixed performance on Friday.</p>

<p>In London, shares in banking giant HSBC dropped 4.7 per cent, while Standard Chartered fell 4.4 per cent, Barclays 4.1 per cent and Lloyds 3.5 per cent, reports AFP news agency.</p>

<p>In the eurozone, Deutsche Bank tanked 10 per cent at one stage and closed down 7.4 per cent, while French lender Societe Generale slumped 4.5 per cent.</p>

<p>Asian stocks posted steep losses&nbsp;too.</p>

<p><em>(With inputs from agencies)</em><br />
<br />
&nbsp;</p>

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US regulators have taken control over the Silicon Valley Bank (SVB) after it was shut down, marking the largest retail bank failure since the 2008 financial crisis.

US regulators have taken control over the Silicon Valley Bank (SVB) after it was shut down, marking the largest retail bank failure since the 2008 financial crisis. The Federal Deposit Insurance Corporation (FDIC) on Friday announced that it has taken control of the customer deposits of the lender which are roughly around $175 billion. The regulator typically protects deposits of up to $250,000. The bank primarily served technology workers and venture capital-backed companies, including some of the industry’s best-known brands. The move came as the SVB was scrambling to raise money to plug a loss from the sale of assets affected by the Federal Reserve’s interest rate hikes. The quick jump in interest rates meant that securities they had bought were selling for significantly less. This sparked a rush of customer withdrawals amidst fears about the state of the banking sector. The US regulator said they acted to "protect insured depositors" and that the bank offices would reopen and clients with insured deposits would have access to funds "no later than Monday morning". It added that money raised from selling the bank's assets would go to uninsured depositors. Gravitas: Italy exposes China’s underground banking network Meanwhile, the chief executive officer of Silicon Valley Bank, Greg Becker, in a video message to the employees acknowledged the "incredibly difficult" 48 hours leading up to its collapse on Friday. "It's with an incredibly heavy heart that I'm here to deliver this message," he said in the video seen by Reuters. Also read | Hamburg shooting: Police were tipped off about gunman's mental health The CEO said that he is cooperating with banking regulators to find a partner for the bank, but added that there is "no guarantee" that a deal will be struck. According to the bank’s website, nearly half of the US technology and healthcare companies that went public last year after getting early funding from venture capital firms were Silicon Valley Bank customers. It also boasted of its connections to leading tech companies such as Shopify, ZipRecruiter and one of the top venture capital firms, Andreesson Horowitz. Markets collapse The collapse of SVB hooked the global markets on Friday as banking shares across US, EU and UK were in red. In the United States, First Republic Bank was among the hard-hit banks whose shares slumped 14.8 per cent, and Comerica, which slipped five per cent. Larger banks like JPMorgan Chase and Bank of America had a mixed performance on Friday. In London, shares in banking giant HSBC dropped 4.7 per cent, while Standard Chartered fell 4.4 per cent, Barclays 4.1 per cent and Lloyds 3.5 per cent, reports AFP news agency. In the eurozone, Deutsche Bank tanked 10 per cent at one stage and closed down 7.4 per cent, while French lender Societe Generale slumped 4.5 per cent. Asian stocks posted steep losses too. (With inputs from agencies) WATCH WION LIVE HERE

Silicon Valley Bank shuts down amidst liquidity crisis, regulator seizes assets; global markets tank

<p>The Silicon Valley Bank (SVB), one of the leading lenders in the United States has sparked a wave of panic in the country and brought down banking shares across the world. The development comes as the SVB announced a share sale to shore up its finances, but the plan did not go well on the Wall Street as investors went on a sell-off spree, triggering a crash in its shares.<br />
<br />
As concerns over the bank's financial position spooked the market, a person familiar with the matter said Greg Becker, the SVB Financial Group Chief Executive Officer held a conference call around 11:30 am with the bank's advising clients including its venture and capital investors for 10 minutes and urged them to 'stay calm' and to support the bank like they had been doing for the past 40 years. Now to understand what happened with one of the US's oldest lenders, it's important to look at why did it happen and what's next. Here's everything you need to know:</p>

<p><strong>When and how did the crisis begin?</strong></p>

<p>As per Google Finance, SVB's stock fell 60 per cent ($106.04) on Thursday and its bond posted record declines.</p>

<p>Back in 2021, the bank saw a massive influx in its deposits which jumped from $61.67 billion to almost $189.20 billion. As its deposits grew, it failed to generate its loan book fast enough to generate the yield it wanted to see on the deposited capital. To tackle this, the bank purchased a large mortgage-backed security (MBS) worth $80 billion for its hold-to-maturity (HTM) portfolio. Over 95 per cent of these MBS were for over 10 years, with an average yield of 1.56 per cent.&nbsp;</p>

<p>However, with the rise in Fed rates, the value of SVB's MBS decreased, as the customers could buy "risk free" bonds from the Fed at a 2.5x higher yield, meaning,&nbsp;with the rising value of the Fed, the value of existing bonds fell.&nbsp;</p>

<p><strong>Who are the SVB's clients?</strong></p>

<p>The United States' leading lender is deeply connected to startups, as its focuses on trade in Silicon Valley and tech startups only.&nbsp;</p>

<p>As per the bank's website, it does business with over 50 per cent of all US venture capital-backed startups and almost 45 per cent of US venture-backed tech and healthcare companies.</p>

<p>The SVB announced that it had sold $21 billion of its Available For Sale (AFS) securities at a $1.8 billion loss and was raising another $2.5 billion in equity and debt.&nbsp;</p>

<p>This came as a surprise for its investors, who thought that the bank won't sell its AFS securities. Prominent venture capitalists advised businesses and startups to withdraw their money from the bank.&nbsp;</p>

<p>According to Bloomberg, a high-profile VC firm, Founders Fund, asked its portfolio companies to move their money. Union Square Ventures and Founder Collective also advised their portfolio companies to pull their funds from the bank.&nbsp;</p>

<p><strong>What could happen next?</strong></p>

<p>With the ongoing crisis at the SVB, analysts have raised their respective concerns.</p>

<p>According to a founding engineer at Glean, Debarghya Das if tech companies and startups continue to pull their money out of the bank, the SVB might go bankrupt, and tech companies would be wiped out, raising the chances of recession. &nbsp;</p>


The Silicon Valley Bank (SVB), one of the leading lenders in the United States has sparked a wave of panic in the country and brought down banking shares across the world.

The Silicon Valley Bank (SVB), one of the leading lenders in the United States has sparked a wave of panic in the country and brought down banking shares across the world. The development comes as the SVB announced a share sale to shore up its finances, but the plan did not go well on the Wall Street as investors went on a sell-off spree, triggering a crash in its shares. As concerns over the bank's financial position spooked the market, a person familiar with the matter said Greg Becker, the SVB Financial Group Chief Executive Officer held a conference call around 11:30 am with the bank's advising clients including its venture and capital investors for 10 minutes and urged them to 'stay calm' and to support the bank like they had been doing for the past 40 years. Now to understand what happened with one of the US's oldest lenders, it's important to look at why did it happen and what's next. Here's everything you need to know: When and how did the crisis begin? As per Google Finance, SVB's stock fell 60 per cent ($106.04) on Thursday and its bond posted record declines. Back in 2021, the bank saw a massive influx in its deposits which jumped from $61.67 billion to almost $189.20 billion. As its deposits grew, it failed to generate its loan book fast enough to generate the yield it wanted to see on the deposited capital. To tackle this, the bank purchased a large mortgage-backed security (MBS) worth $80 billion for its hold-to-maturity (HTM) portfolio. Over 95 per cent of these MBS were for over 10 years, with an average yield of 1.56 per cent. However, with the rise in Fed rates, the value of SVB's MBS decreased, as the customers could buy "risk free" bonds from the Fed at a 2.5x higher yield, meaning, with the rising value of the Fed, the value of existing bonds fell. Who are the SVB's clients? The United States' leading lender is deeply connected to startups, as its focuses on trade in Silicon Valley and tech startups only. As per the bank's website, it does business with over 50 per cent of all US venture capital-backed startups and almost 45 per cent of US venture-backed tech and healthcare companies. The SVB announced that it had sold $21 billion of its Available For Sale (AFS) securities at a $1.8 billion loss and was raising another $2.5 billion in equity and debt. This came as a surprise for its investors, who thought that the bank won't sell its AFS securities. Prominent venture capitalists advised businesses and startups to withdraw their money from the bank. According to Bloomberg, a high-profile VC firm, Founders Fund, asked its portfolio companies to move their money. Union Square Ventures and Founder Collective also advised their portfolio companies to pull their funds from the bank. What could happen next? With the ongoing crisis at the SVB, analysts have raised their respective concerns. According to a founding engineer at Glean, Debarghya Das if tech companies and startups continue to pull their money out of the bank, the SVB might go bankrupt, and tech companies would be wiped out, raising the chances of recession.

Silicon Valley Bank crisis: What led to stock crash & what's next. Here's everything you need to know

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