Silicone Valley Bank

        On Friday Silicone Valley Bank a lender so some of the biggest names in the technology world. How did it crash, the bank took too many massive deposits, and higher interest rates caught it. Their customers were taking withdrawals to fulfill their customers needs the bank had to sell some of their investments. 

 

       Silicone valley bank had a significant number of big and uninsured depositors. Once Silicon Valley bank revealed its massive loss on Wednesday the tech industry panicked and rushed to withdraw their money. Later that week Silicone Valley bank kept going down the FDIC on Friday that they would take over 40 years of the bank. The financial advisors tried but failed to find a buyer to take over. After the FDIC took over put about 175 billion dollars of customer deposits under the control of the federal regulator. This was the most significant financial crisis since 2008 and congress passes the Doof Frank financial regulator package a law to prevent this from happening.



        Personally, I think the bank should have done something different to prevent this because now the FDIC is trying to find a way to give the people their money back and they want someone to buy it but nobody wants to cause it would just be a mess and nobody wants to deal with it.

 

Do you think they could have done something different to prevent this?

How do you feel about the situation?

 

 

Resoures 

https://www.nytimes.com/article/svb-silicon-valley-bank-explainer.html

 

 

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Replies

  • Good topic choice but its one that is tough to reply to as many students don't understand it. You didn't reply to any student comments which is worth 30 points.

  • I do not really know what they could have really done to prevent this collapse from taking place. At the end of the day there will always be the human factor in these situations; someone, somewhere down the line of command will always make a mistake. This mistake just snowballed into what it has become.

  • I am not sure what they could have done about it but I do think that human error happens and will happen no matter what so even if there is a lot of stuff in place to prevent things like this it can still happen. I think that to some people this would cause some major losses and that it sucks but not much to do about it.

  • I think that it is pretty crazy that the bank crashed. That rarely happens and it is pretty crazy for how big the crash was. Because of FDIC, I am sure that everyone will get their money back. But many companies have definitely been affected.

  • Yes they could have prevented it by not spending more money then they had coming in. i feel that if you have moeny take it out and buy your own little lock box let stuff go back to normal and then put it back in the bank.

  • I think that it is just a strange situation all around. I think that it will definately be strange to come back from and will definately leave a dent in the economy for a few weeks and also teach us something important to help prevent this from happening in the future.

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