A massive line formed outside the Silicon Valley Bank earlier today.
A massive line formed outside of a Silicon Valley Bank branch in San Francisco this morning.
The FDIC insures up to $250,000 per depositor, per FDIC-insured bank, per ownership category. If customers were holding more than that amount then they are at risk of losing anything over $250,000. According to earlier reports, 90% of SVB customers had more than $250,000 in the bank.
Customers also lined up in New York City.
The NYPD responded to a Silicon Valley Bank branch in Manhattan Friday morning after investors showed up to try to pull money out of their accounts.
Silicon Valley Bank on Friday was shut down by regulators in the biggest bank failure since the 2008 liquidity crisis with $173 billion in holdings.
The Fed interest rate is at 4.57% and $117 billion of Silicon Valley Bank securities are yielding only 1.56-1.66% – this is causing a run on the bank.
California regulators shut down the bank and the FDIC took over.
Silicon Valley Bank holds $173B of deposits.
Fed interest rate is at 4.57%
SVB’s $117B of securities (MBS) yield 1.56-1.66%
This is causing a bank run
If enough VC / tech cos pull their money,
—SVB may be bankrupt
—Many startups may be wiped out
—Crash may cause a recession! pic.twitter.com/wA38Mx1edb
— Deedy (@debarghya_das) March 10, 2023
Via TikTok. and Midnight Rider.