- Silicon Valley Bank (svb) had $212bn of assets and failed with spectacular speed, making it the biggest lender to collapse since the global financial crisis of 2007-09.
- Most of svb’s depositors were Bay Area tech startups with accounts holding well in excess of the $250,000 that is insured by the federal government.
- On March 12th regulators judged svb too big to fail and guaranteed all the bank’s deposits.
- At the end of 2022 there were $620bn of unrealised securities losses on banks’ books.
- The Fed is offering banks support on strikingly generous terms, lending against long-term Treasuries and mortgage-backed securities up to the face value of the securities.
Silicon Valley Bank was inadequately regulated
Silicon Valley Bank, America's largest lender to collapse since the global financial crisis, was inadequately regulated and the Fed is offering banks support on strikingly generous terms.