Tech industry dodges a financial bullet after SVB crash
Silicon Valley Bank (SVB) in Santa Clara, CA, billed itself as “the financial partner of the innovation economy” and had more than $342 billion in deposits — including money from many influential venture capitalists, start-ups and tech firms.
That was before last week happened, when a sudden run on the bank opened the door to the prospect of a larger meltdown in the financial system. After a weekend scramble, the Biden Administration, the US Treasury, the Federal Reserve, and the Federal Deposit Insurance Corp. (FDIC) devised a way to back up the full value of SVB deposits beyond the federally insured ceiling of $250,000. (The same is true for Signature Bank, which also failed.)