Silicon Valley Bank collapse marks the largest since 2008 crisis.

During its collapse, Silicon Valley Bank held $209 billion in total assets, according to the FDIC. The extent to which the bank’s deposits exceeded the $250,000 insurance limit at that time is uncertain. However, previous regulatory reports suggested that a substantial portion of the bank’s deposits surpassed this threshold.

After a bank run, US regulators assume control of SVB’s assets, with global institutions closely monitoring the situation.

What led to the downfall of Silicon Valley Bank?

Friday witnessed a bank run on Silicon Valley Bank, a prominent technology lender, prompting US regulators to promptly seize its assets. This occurrence represents the most substantial failure of such an institution since the height of the financial crisis over a decade ago.

SVB, ranked as the 16th largest bank in the US, suffered a collapse as depositors, mainly technology workers and venture capital-supported companies, hurried to withdraw their funds this week due to increasing concerns about the bank’s stability.

During its collapse, Silicon Valley Bank held $209 billion in total assets, according to the FDIC. The extent to which the bank’s deposits exceeded the $250,000 insurance limit during that period is uncertain, but previous regulatory reports suggested a significant portion surpassed that threshold.

However, Silicon Valley’s alignment with the technology industry swiftly transformed into a drawback. Over the last 18 months, tech stocks experienced a substantial downturn after a surge during the pandemic, leading to widespread layoffs across the sector.

Tyrner mentioned having discussions with friends benefiting from venture capital, expressing deep distress about the bank’s collapse. On Thursday, Tyrner’s Chief Operating Officer tried to withdraw the company’s funds, but the attempt came too late.