The Rising Influence of Rising Affluence

[DewDiligence]

Silicon Valley Bank collapses in_second-biggest-ever_US_bank_failure:

https://www.wsj.com/articles/svb-financial-pulls-capital-raise-explores-alternatives-including-possible-sale-sources-say-11de7522

Silicon Valley Bank collapsed Friday in the second-biggest bank failure in U.S. history after a run on deposits doomed the tech-focused lender’s plans to raise fresh capital.

The Federal Deposit Insurance Corp. said it has taken control of the bank via a new entity it created called the Deposit Insurance National Bank of Santa Clara. All of the bank’s deposits have been transferred to the new bank, the regulator said. Insured depositors will have access to their funds by Monday morning, the FDIC said. Depositors with funds exceeding insurance caps will get receivership certificates for their uninsured balances.

The bank run was triggered by SVB’s disclosing huge losses in its bond portfolio due to rising interest rates.

Shares of SIVP, the parent holding company for the bank, ceased trading this morning after dropping 60% from yesterday’s close.