The $42bn bank run that sunk Silicon Valley Bank

Silicon Valley Bank was shut down by US regulators after failing to raise $2.25bn in new funding to cover losses on its bond portfolio. Rising interest rates had exposed the lender to a margin squeeze, causing its customers to pull or burn cash, and on Friday, clients attempted to withdraw $42bn.

March 12, 2023 . 4:37 AM

1 min read

Silicon Valley Bank was shut down by US regulators after failing to raise $2.25bn in new funding to cover losses on its bond portfolio.
SVB had a codependent relationship with tech start-ups, which backfired as the tech world was rocked by rising interest rates.
SVB was exposed to a margin squeeze and a $15bn decline in its bond portfolio.
SVB had attempted to raise $1.25bn of its common stock plus $500mn of mandatory convertible preferred shares, but failed.
SVB customers had begun to pull or burn cash, and on Friday, clients attempted to withdraw $42bn.