This week, Silicon Valley Bank (SVB) collapsed in a matter of 48 hours. SVB was the go-to bank for US tech startups and its sudden fall has left many high-powered customers and investors feeling uncertain about their future.
The timeline of events began on Tuesday when the Federal Reserve announced that it would be taking control over SVB’s parent company, Pacific Western Bank. This move came as a result of an investigation into potential fraud at Pacific Western, which had been ongoing since 2019.
On Wednesday morning, news broke that Silicon Valley Bank was suspending all operations due to “regulatory issues” with its parent company. Customers were unable to access their accounts or make any transactions until further notice from the bank itself or regulators involved in the case against Pacific Western Bank.
By Thursday evening, SVB made an official announcement stating that it had ceased all banking activities indefinitely due to regulatory concerns surrounding its parent company’s alleged fraudulent activity and lack of capital reserves needed for continued operation under current regulations. The statement also indicated that customer deposits are safe but may not be accessible during this period while investigations continue into what caused such a rapid collapse within 48 hours time frame.
Read more at CNN
