15 March 2023

Sillicon Valley Bank: 2008 all over again?

Silicon Valley Bank (SVB) was a state-chartered commercial bank based in California.

SVB was founded in 1983, by Bill Biggerstaff and Robert Medearis, to focus on the needs of startup companies.
In 2022, SVB registered major losses following increased interest rates and a major downturn in growth in the tech industry, one of the most important business areas for the bank.
March 10th 2023 is the official date that sets the collapse of Sillicon Valley Bank, that was acquired by HSBC UK on a rescue deal.
The news of it's collapse shocked the world, as it was the second largest in the US Banking Sector, bringing with it memories of the 2008 financial crisis and a fear that it could happen again.
The four largest US banks lost about $52 billion on the stock market on Thursday and, following suit, Asian and European banks also depreciated.
The consequences of this event are not known for sure but opinions are divided and the fear is growing.