6:11 PM · 10 March 2023

SVB Financial bank closed by FDIC decision

The listing of US-based Silicon Valley Bank Financial (SIVB.US) has been halted following a decision by California regulator FDIC to suspend its operations. This is the first such acquisition by the FDIC this year.

SVB was the 18th largest bank in the U.S., with $212 billion in assets of which $120 billion were securities of various types. Losses from its bond portfolio amounted to nearly $16 billion at a time when the bank's total equity was $15.8 billion.

SVB was mainly involved in financing the technology sector, venture capital and private equity firms operating in the new technology market. Its closure could bring considerable turmoil not only to the banking sector but also to the startup market and companies in need of external financing.

Unrealized losses on the bank's bond portfolio increased after the Fed raised interest rates in 2022. Source: ZeroHedge

Silicon Valley Bank (SIVB.US) shares, D1 interval. Source: xStation5

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