Silicon Valley Bank goes bust — regulators take control of $175B+ in deposits

Friday, March 10, 2023 Posted by bloggerdaddy
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By Haje Jan Kamps

Friday, March 10, 2023

Hi, Crunchers,

Today, there's only one story on everyone's lips: The sudden and dramatic collapse of Silicon Valley Bank (SVB), the 40-year-old Silicon Valley institution. With $209 billion of assets under management at the time of its failure, it's the second-largest bank failure in U.S. history.

A huge number of startups suddenly found themselves in a pickle as the bank went through a Swift-Velocity Breakdown. In this special edition of the Daily Crunch, we summarize what the Sudden Value Bust means across the industry.

Haje

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Image Credits: David Paul Morris/Bloomberg / Getty Images

The TechCrunch Top Story

  • Regulators stepping in: Natasha M reports that the bank and its 17 branches were closed by the California Department of Financial Protection and Innovation. The agency appointed the Federal Deposit Insurance Corporation (FDIC) as receiver.
  • So, er, what happened?: (TC+): Alex can be trusted to provide the context, and concludes that it seems like the rumor of SVB being in trouble caused a run on the bank, which put it in actual trouble soon after.
  • What the founders think: Several of my colleagues took to the (virtual) streets and got the lowdown on how founders are reacting to the bank's collapse.

The demise of Silicon Valley Bank

Before the bank got shut down by regulators, a lot of things happened very quickly:

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Image Credits: Jose Bernat Bacete / Getty Images (Image has been modified)

And some other news too

Okay, fine, there were other things happening besides SVB going straight to hell without passing “go” today as well. Here's a smattering of things worth reading across the rest of the site…

A lot of news in cybersecurity today, as Carly reports that the SEC charges Blackbaud for failing to disclose the 'full impact' of a ransomware attackZack writes that Telehealth startup Cerebral shared millions of patients' data with advertisers; and Zack also reports that PeopleGrove security lapse exposed users' personal information. Meanwhile, Lorenzo dove in to explore how the FBI proved a remote admin tool was actually malware.

And here are some non-SVB, non-cybercrime headlines for you as well. Aren't we generous today:

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