NOTHING TO SEE HERE, MOVE ALONG: Silicon Valley Bank seized by FDIC, marking largest shutdown of a US bank since 2008. “The bank failed after depositors – mostly technology workers and venture capital-backed companies – began withdrawing their money creating a run on the bank. . . . Silicon Valley bank was not a small bank, it’s the 16th largest bank in the country, holding $210 billion in assets. It acts as a major financial conduit for venture capital-backed companies, which have been hit hard in the past 18 months as the Federal Reserve has raised interest rates and made riskier tech assets less attractive to investors.”
But don’t worry: “Silicon Valley was heavily exposed to tech industry and there is little chance of contagion in the banking sector as there was in the months leading up to the Great Recession more than a decade ago. Major banks have sufficient capital to avoid a similar situation.”
So there.