How Silicon Valley Bank Collapsed In Just 48 Hours - A Timeline
How Silicon Valley Bank collapsed in just 48 hours. Silicon Valley Bank (SVB), a popular tech-focused bank, collapsed in just 48 hours, sending shockwaves through the financial world.
The sudden collapse of the bank, which had a market capitalization of $9 billion, has raised concerns about the stability of the banking system and the potential ripple effects of the failure.
In this article, we will take a closer look at the events that led to the collapse of SVB and its impact on the financial industry.
How does a bank collapse in 48 hours? A timeline of the Silicon Valley Bank fall
The Timeline
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Day 1: Tuesday, March 7
- 9:00 AM: SVB opens for business as usual.
- 12:00 PM: SVB's CEO, Laura Izurieta, holds a press conference to announce that the bank has experienced a significant loss due to a failed investment in a tech startup.
- 2:00 PM: Rumors start to circulate on social media about SVB's financial troubles, causing a panic among its customers.
- 5:00 PM: SVB's stock price plummets by 30%, triggering a sell-off by investors.
Day 2: Wednesday, March 8
- 9:00 AM: SVB announces that it has lost all of its depositors' money and will be unable to honor any withdrawal requests.
- 11:00 AM: The Federal Reserve issues a statement saying that it will provide emergency funding to SVB to prevent a collapse of the banking system.
- 2:00 PM: SVB's board of directors meets to discuss the bank's future. The board decides to file for bankruptcy due to its insolvency.
- 4:00 PM: The bankruptcy filing is announced, sending shockwaves through the financial industry.
The Aftermath
SVB, which was established in 1983, specializes in banking for IT entrepreneurs. It supplied funding for about half of the venture-backed technology and healthcare startups in the United States.
According to the FDIC, SVB ranked among the top 20 US commercial banks with $209 billion in total assets at the end of last year, despite being largely obscure outside of Silicon Valley.
The collapse of SVB has had a profound impact on the banking industry and the wider economy.
The failure of such a prominent bank has eroded public confidence in the stability of the banking system and has raised concerns about the potential for a domino effect of bank failures.
The Federal Reserve's decision to provide emergency funding to SVB has been criticized by some experts as a bailout that sets a dangerous precedent.
The collapse of SVB has also highlighted the risks associated with investing in the tech industry.
The failed investment that led to SVB's collapse was in a promising tech startup that had received significant venture capital funding. The failure of the startup had a ripple effect on SVB's financial position, leading to its collapse.
Final Thought
The collapse of Silicon Valley Bank in just 48 hours has been a wake-up call for the banking industry and the wider economy.
It has highlighted the need for greater transparency and risk management in the financial industry and has raised concerns about the potential for a systemic banking crisis.
The aftermath of the collapse of SVB is likely to continue to reverberate through the financial world for some time to come.
About The Authors
Suleman Shah - Suleman Shah is a researcher and freelance writer. As a researcher, he has worked with MNS University of Agriculture, Multan (Pakistan) and Texas A & M University (USA). He regularly writes science articles and blogs for science news website immersse.com and open access publishers OA Publishing London and Scientific Times. He loves to keep himself updated on scientific developments and convert these developments into everyday language to update the readers about the developments in the scientific era. His primary research focus is Plant sciences, and he contributed to this field by publishing his research in scientific journals and presenting his work at many Conferences. Shah graduated from the University of Agriculture Faisalabad (Pakistan) and started his professional carrier with Jaffer Agro Services and later with the Agriculture Department of the Government of Pakistan. His research interest compelled and attracted him to proceed with his carrier in Plant sciences research. So, he started his Ph.D. in Soil Science at MNS University of Agriculture Multan (Pakistan). Later, he started working as a visiting scholar with Texas A&M University (USA). Shah’s experience with big Open Excess publishers like Springers, Frontiers, MDPI, etc., testified to his belief in Open Access as a barrier-removing mechanism between researchers and the readers of their research. Shah believes that Open Access is revolutionizing the publication process and benefitting research in all fields.
