Silicon Valley Bank (SVB), an American bank specializing in venture capital, was administratively closed on March 10, 2023 by the Federal Deposit Insurance (FDIC). A bankruptcy caused by an attempt to simultaneously withdraw money from several bank customers.
The failure of Silicon Valley Bank (SVB) can be explained by a series of events associated with bad choices. Indeed, according to the media leSiecledigital, the number of investments in start-ups having fallen in recent months, the SVB has decided to liquidate part of its Treasury bonds, up to 21 billion dollars, generating a loss of 1.8 billion dollars, explains the online media.
This is how several hundred bank customers tried on March 9 and 10, 2023 to withdraw money from their accounts, which caused the bank to go bankrupt, we can read.
In view of this situation, the Federal Deposit Insurance (FDIC) decided to close Silicon Valley Bank and transfer all of its deposits to a new entity: La Deposit Insurance National Bank of Santa Clara. However, measures have been taken for SVB customers.
The FDIC has guaranteed bank customers that they might have access to their cash as early as March 13, 2023. After that, all SVB customers will have their deposits guaranteed, even if they exceed the $250,000 limit that is usually appropriate in this situation.
Djemal Saddam El Abdallah SIBA
For Burkina 24
