The whole story of the collapse of Silicon Valley Bank 

2023-03-14

The bankruptcy of Silicon Valley Bank first hit depositors and investors. By the end of last year, Silicon Valley Bank had an estimated $151 billion in uninsured deposits. The Federal Deposit Insurance Corporation will provide deposit insurance of up to $250000 for bank depositors. Depositors with deposits exceeding $250000 may not be able to retrieve all their money quickly, including many science and technology startups.

Sunrun, a household solar installation company, has been financed by Silicon Valley Bank for many years. With the collapse of Silicon Valley Bank, Sunrun's share price plunged 12% last Friday. There are many similar enterprises, including many Cryptocurrency companies, which have also caused a strong impact on the Cryptocurrency market.

Circle Internet Financial, the operator of USD Coin (USDC), one of the major Cryptocurrency, has $3.3 billion in deposits in Silicon Valley Bank. After the bankruptcy of Silicon Valley Bank, the price of USDC fell sharply. The USDC is known as the Cryptocurrency of Stablecoin. According to the issuance design, it should be traded at a price of $1.

The failure of Silicon Valley Bank also severely damaged American bank shares. The market value of American banks evaporated about $90 billion this Monday, with the largest loss coming from medium-sized banks similar to Silicon Valley Bank. Silvergate Capital, a bank focusing on the Cryptocurrency industry, saw its share price plummet 30% after hours on Wednesday, announced that it was closed, and voluntarily liquidated its subsidiary Silvergate Bank, which provides services for the Cryptocurrency industry. The liquidation plan includes full repayment of all deposits.

In this turmoil, the banks most severely affected are those whose loans are excessively expanded and linked to high-risk assets such as Mortgage loan loans, or those whose customers respond more strongly. These customers are quite sensitive to the market and go to the bank to withdraw money whenever there is a stir. Two days after the collapse of Silicon Valley Bank, Signature Bank, headquartered in New York, also collapsed. The bank's business focuses on the Cryptocurrency industry. Investors are concerned that more and more similar banks will be impacted.

However, stocks of large banks such as JPMorgan Chase, Citigroup, and Bank of America also fell, but the sell-off was not as significant.

The bankruptcy of Silicon Valley Bank first hit depositors and investors. By the end of last year, Silicon Valley Bank had an estimated $151 billion in uninsured deposits. The Federal Deposit Insurance Corporation will provide deposit insurance of up to $250000 for bank depositors. Depositors with deposits exceeding $250000 may not be able to retrieve all their money quickly, including many science and technology startups.

Sunrun, a household solar installation company, has been financed by Silicon Valley Bank for many years. With the collapse of Silicon Valley Bank, Sunrun's share price plunged 12% last Friday. There are many similar enterprises, including many Cryptocurrency companies, which have also caused a strong impact on the Cryptocurrency market.

Circle Internet Financial, the operator of USD Coin (USDC), one of the major Cryptocurrency, has $3.3 billion in deposits in Silicon Valley Bank. After the bankruptcy of Silicon Valley Bank, the price of USDC fell sharply. The USDC is known as the Cryptocurrency of Stablecoin. According to the issuance design, it should be traded at a price of $1.

The failure of Silicon Valley Bank also severely damaged American bank shares. The market value of American banks evaporated about $90 billion this Monday, with the largest loss coming from medium-sized banks similar to Silicon Valley Bank. Silvergate Capital, a bank focusing on the Cryptocurrency industry, saw its share price plummet 30% after hours on Wednesday, announced that it was closed, and voluntarily liquidated its subsidiary Silvergate Bank, which provides services for the Cryptocurrency industry. The liquidation plan includes full repayment of all deposits.

In this turmoil, the banks most severely affected are those whose loans are excessively expanded and linked to high-risk assets such as Mortgage loan loans, or those whose customers respond more strongly. These customers are quite sensitive to the market and go to the bank to withdraw money whenever there is a stir. Two days after the collapse of Silicon Valley Bank, Signature Bank, headquartered in New York, also collapsed. The bank's business focuses on the Cryptocurrency industry. Investors are concerned that more and more similar banks will be impacted.

However, stocks of large banks such as JPMorgan Chase, Citigroup, and Bank of America also fell, but the sell-off was not as significant.