Silicon Valley Financial institution’s astonishing fall Friday started when its clients rushed to attract down their accounts unexpectedly — a destabilizing occasion often known as a financial institution run.
The financial institution supplied financing for nearly half of US venture-backed expertise and well being care corporations. It was the most important failure of a US financial institution since Washington Mutual in 2008, through the Nice Recession.
Though the financial institution’s fall unfolded over a fast 48 hours, the story begins years in the past with strikes made by the Fed and funding choices by the financial institution.
Right here’s what led to the demise of a High 20 US business financial institution: