The FDIC seized Silicon Valley Bank's $209 billion in assets, ordering the bank closed and taking control of its $175.4 billion in deposits. The massive meltdown marks the biggest bank failure since the 2008 financial crisis.
Police responded to Silicon Valley Bank’s New York offices on Friday as panicked clients demanded their money amid the institution’s shocking implosion.just a few hours later, ordering the bank closed and taking control of its $175.4 billion in deposits. The massive meltdown marks the biggest bank failure since the 2008 financial crisis.
SVB, the 16th-largest bank in the country, has been “one of the startup industry’s most important banks,”. But after Peter Thiel’s Founders Fund on Thursday raised questions about SVB’s financial health, recommending that its clients withdraw their funds from the bank, and, in a now-deleted tweet, investor Michael Burry compared SVB to Enron, SVB’s stock immediately tanked, cleaving some $80 billion from its market cap in a matter of hours.
“It’s just frustrating,” Levi told The Daily Beast, explaining that he had “most of” his firm’s money with SVB because it was “the safe choice.” Now, no one at the collapsing bank will return his calls or respond to his emails, Levi said.“Everyone came there because our bankers told us to go there,” he continued, explaining that he had been told by an SVB representative that the New York location would cut him a cashier’s check. “And we just had some questions.
The waiting is the worst part, according to Levi, who said he and many others like him are now “in crisis mode, in triage mode.”Levi now has more faith in J.P. Morgan, where he maintains his other accounts, noting that their bankers answered his urgent emails and phone calls last night into the early morning hours.
Journalist Eric Newcomer, who pens a widely-read newsletter focused on startups, wrote Friday that one major investor told him “about ten of his portfolio companies had pulled out about $1.5 billion collectively” from SVB. They requested the funds on Thursday at around 6 p.m. EST, and got it this morning,
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