California-based Bank
US authorities have seized control of Silicon Valley Bank to protect depositors at the California-based bank as the bank’s woes sparked fears of contagion in the sector. Silicon Valley Bank says it lost 1.8 billion dollars in sales of securities in an effort to raise funds.
With interest rates rising, SVB saw heavy withdrawals and needed more liquidity. SVB works with over half of US tech and healthcare startups. Its shares dropped 60 percent on the news, taking other US banks down as well.
Credit to : DW News