Daily Crunch: Silicon Valley Bank goes bust — regulators take control of $175B+ in deposits

6 months ago 10

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Hi, Crunchers,

Today, there’s lone 1 communicative connected everyone’s lips: The abrupt and melodramatic illness of Silicon Valley Bank (SVB), the 40-year-old Silicon Valley institution. With $209 cardinal of assets nether absorption astatine the clip of its failure, it’s the second-largest slope nonaccomplishment successful U.S. history.

A immense fig of startups abruptly recovered themselves successful a pickle arsenic the slope went done a Swift-Velocity Breakdown. In this peculiar variation of the Daily Crunch, we summarize what the Sudden Value Bust means crossed the industry.


The TechCrunch Top Story

  • Regulators stepping in: Natasha M reports that the slope and its 17 branches were closed by the California Department of Financial Protection and Innovation. The bureau appointed the Federal Deposit Insurance Corporation (FDIC) arsenic receiver.
  • So, er, what happened?: (TC+): Alex tin beryllium trusted to supply the context, and concludes that it seems similar the rumor of SVB being successful occupation caused a tally connected the bank, which enactment it successful actual occupation soon after.
  • What the founders think: Several of my colleagues took to the (virtual) streets and got the lowdown connected however founders are reacting to the bank’s collapse.

The demise of Silicon Valley Bank

Before the slope got unopen down by regulators, a batch of things happened precise quickly:

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And immoderate different quality too

Okay, fine, determination were different things happening too SVB going consecutive to hellhole without passing “go” contiguous arsenic well. Here’s a smattering of things worthy speechmaking crossed the remainder of the site…

A batch of quality successful cybersecurity today, arsenic Carly reports that the SEC charges Blackbaud for failing to disclose the ‘full impact’ of a ransomware attackZack writes that Telehealth startup Cerebral shared millions of patients’ information with advertisers; and Zack besides reports that PeopleGrove information lapse exposed users’ idiosyncratic information. Meanwhile, Lorenzo dove successful to research however the FBI proved a distant admin instrumentality was really malware.

And present are immoderate non-SVB, non-cybercrime headlines for you arsenic well. Aren’t we generous today:

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