Silicon Valley Bank's Collapse Triggers Run on Bank and Massive Short-Selling as FDIC Seeks Buyer
This article was originally published on CEOBLOC:
Silicon Valley Bank's (SVB) failure has caused widespread concern in the tech industry, with over $42 billion being withdrawn by depositors following the bank's announcement that it needed to raise $2.25 billion to shore up its balance sheet. The FDIC has taken over and will cover up to $250,000 per depositor, but the vast majority of SVB's customers are businesses that had kept far greater uninsured amounts at the bank. Venture capital firms, including Accel, Cowboy Ventures, Greylock, Lux Capital, and Sequoia, have signed a joint statement vowing to do business again with SVB if it is "purchased and appropriately capitalized."
