Silicon Valley Bank

SVB Financial Group is reportedly exploring a sale after selling billions of dollars of assets to make its customers whole and sparking a panic on Wall ...

On Thursday, as bank stocks around the world fell in response to the crisis at SVB, contagion fears spread on Wall Street. “Treasury is aware of recent developments. Signature Bank, another crypto-friendly lender, was hit hard by the bank selloff, with shares sinking 30% before being halted for volatility Friday. The stock tumbled 60% Thursday after the bank said it had to sell a portfolio of US Treasuries and $1.75 billion in shares at a loss to cover rapidly declining customer deposits — essentially facing a run on the bank. When interest rates were near zero, banks loaded up on long-dated, low-risk Treasuries. Back then, he said, “banks were taking excessive risks, and people thought everything was fine.

The Federal Deposit Insurance Corporation took control of the bank's assets on Friday. The failure raised concerns that other banks could face problems, ...

In its surprise disclosure on Wednesday, the bank admitted that it had lost nearly $2 billion when it was all but forced sell some of its holdings. The bank’s deposits doubled to $102 billion at the end of 2020 from $49 billion in 2018. To pay those redemption requests, Silicon Valley Bank had to sell off some of its investments at exactly the wrong time. The bank as of Friday morning was working with advisers on a potential sale, a person with knowledge of the negotiations said, and had halted trading in its shares in the wake of a rapid fall. Flush with cash from high-flying start-ups, it bought huge amounts of bonds more than a year ago, just before the Federal Reserve began to raise interest rates. Silicon Valley Bank, a lender to some of the biggest names in the technology world, did just that on Friday, becoming the largest bank to fail since the 2008 financial crisis. Though Silicon Valley Bank advertised itself as a “partner for the innovation economy,” it was being shaken by decidedly old-fashioned decisions. created a new bank, the National Bank of Santa Clara, to hold the deposits and other assets of the failed one. The regulator said in a news release that the new entity would be operating by Monday and that checks issued by the old bank would continue to clear. Silicon Valley Bank’s spiral accelerated with incredible speed this week, but its troubles have been brewing for more than a year. After a slump on Thursday, shares of JPMorgan, Wells Fargo and Citigroup all nudged higher on Friday. Customers with accounts that surpassed that amount — the maximum covered by F.D.I.C.

The FDIC said in the announcement that insured depositors will have access to their deposits no later than Monday morning. SVB's branch offices will also ...

$12 billion $13 billion $20 billion $25 billion $19 billion $32 billion $173 billion $212 billion $188 billion $307 billion The FDIC said loan customers of SVB should continue to make their payments as normal. The FDIC said in the announcement that insured depositors will have access to their deposits no later than Monday morning.

California banking regulators on Friday closed SVB Financial Group , the largest bank failure since the financial crisis, moving quickly to protect ...

"There are some aspects to what is occurring at SVB Financial that are common to the banking system more broadly. We believe the sell-off was overdone as large banks have a lot more liquidity than smaller banks, they are more diversified with broader business models, have a lot of capital, are much better managed in regards to risk, and have a lot of oversight from regulators... The bank reports that 39% of its deposits are from early-stage companies in the technology and healthcare sectors. But all banks may feel increasing pressure to raise the rates they pay on deposits in order to retain them as they compete with attractive Treasury and money-market yields." The deposit base from the major banks is much more diversified than SVB and the big banks are in good financial health." The good news is they are in trouble because they specialized in venture-backed technology and lending to startups, while other more traditional banks aren’t heavy in those areas. That's why the banks are selling off and the market is nervous." "We believe that the sharp sell-off in bank stocks yesterday was likely overdone as investors extrapolated idiosyncratic issues at individual banks to the broader banking sector. And while this week’s stock price action may have seemed shocking, the reality is that some of the related issues could certainly take a while to resolve. "There could be a bloodbath next week as banks are in trouble, the short sellers are out there and they are going to attack every single bank, especially the smaller ones." And that only adds to elevated anxiety about where the equity market is going to be a couple of months down the road." "During a period of uncertainty, the initial reaction is going to be to reduce positions.

WASHINGTON, D.C.— Dennis M. Kelleher, Co-founder, President and CEO, issued the following statement in connection with the failure of Silicon Valley Bank.

Better Markets is a non-profit, non-partisan, and independent organization founded in the wake of the 2008 financial crisis to promote the public interest in the financial markets, support the financial reform of Wall Street and make our financial system work for all Americans again. The Fed’s actions to fight increasing inflation will need to be materially adjusted, which it should be anyway because inflation is driven by many factors that are beyond the Fed’s control. Causing financial instability and a recession (of any depth and length) while missing the mark on inflation should cause a fundamental rethinking of the Fed’s powers, authorities, and role.” As a result, contagion is coming because the same dynamic that led to SVB’s failure is going to happen at other non- too-big-to-fail banks unless and until regulators intervene. The FDIC is only giving non-insured depositors an “advance dividend” of unknown amount within the next week and “receivership certificates” for their balances, which likely means they have to get in line with all the bank’s other creditors and hope that at some point in the future they might get some of their money back. The Fed doubled down on this policy when the 2020 pandemic-caused crash hit and then failed to recalibrate and course correct when circumstances changed. Given these unprecedented actions happened over just a few months, banks and the financial system had grossly insufficient time to adjust. “Ironically, some of that withdrawn depositor money will flow to Wall Street’s too-big-to-fail banks because most believe the Fed will bail them out if they get into trouble. [only 7 GSIBs](https://www.fsb.org/wp-content/uploads/P211122.pdf)), which are thousands of banks in the U.S., do not have that benefit. That resulted in mark to market repricing of numerous assets on banks’ balance sheets and a classic maturity mismatch between assets and liabilities. That’s because its depositors were withdrawing their money so fast that the bank was insolvent, and an intraday closure was unavoidable due to a classic bank run. “The FDIC has all but guaranteed more and quicker runs on the many similarly situated other banks in the US because it is only covering insured depositors.

Silicon Valley Bank (SVB)'s collapse after a plunge in value may pose a major risk to the UK tech industry.

SVB was founded in 1983 and has been in the UK market since 2004. SVB has in the past said it provides accounts for half of US startups. That hasn’t prevented UK startups from withdrawing at least some of their funds from SVB UK. On Thursday the Nasdaq-listed US parent company lost more than 60% of its share value. Regulators in California have closed Silicon Valley Bank (SVB) after a liquidity crisis at the startup lender prompted panic withdrawals. However, he added that he wasn’t “sure if [it’s] justified”.

California's banking regulators shut down Silicon Valley Bank and put in into receivership under the Federal Deposit Insurance Corp. (FDIC). That effectively ...

Though the problems appear to be isolated at SVB, the run on the bank sparked concerns about the banking sector as a whole. "We do not believe there is a liquidity crunch facing the banking industry." The troubles at SVB come as Wall Street had already been on edge. "They really developed a niche that was the envy of the banking space," says Jared Shaw, a senior analyst at Wells Fargo. On Thursday, shares of all kinds of lenders, including the big banks, sagged. That led to a major slump in SVB's shares.

SVB had prompted a global sell-off in banking stocks after it launched a rescue share sale to plug a near-$2bn (£1.7bn) hole in its finances. The bank lost the ...

It was not immediately clear what the implications for SVB’s UK operations would be, though its roughly 3,5000 customers were understood to have been pulling deposits in light of the turmoil. Shares in NatWest closed 2.5% lower, Barclays fell nearly 6% and Lloyds Banking Group ended the day down 4.5%. Furthermore, UK lenders also hedge risks linked to those portfolios. Those bonds had dropped in value as a result of rising interest rates, leaving SVB with a shortfall. Those without deposit insurance will be paid an advanced dividend next week. The bank lost the funds when it sold a portfolio of bonds in response to a decline in customer deposits.

Around $487 million of Roku's cash reserves are stuck at Silicon Valley Bank, the streaming media company said Friday.

[both large](https://www.cnbc.com/2023/03/10/first-republic-leads-regional-bank-rout-as-silicon-valley-bank-crisis-raises-fears-about-bond-losses.html) and small companies alike. As the favored lender and banker for many Silicon Valley startups and venture capital firms, the company's receivership has [alarmed founders](https://www.cnbc.com/2023/03/10/silicon-valley-investors-and-founders-express-shock-at-svb-collapse.html), who worry about [meeting payroll and critical obligations](https://www.cnbc.com/2023/03/10/silicon-valley-bank-customers-scramble-to-meet-payroll-pay-bills.html) with limited cash available. Nonetheless, Roku said it believed it would be able to meet its capital obligations for the "next twelve months and beyond" with its unaffected $1.4 billion in cash reserves at other, "large financial institutions." "At this time, the Company does not know to what extent the Company will be able to recover its cash on deposit at SVB," Roku said in a press release. "As stated in our 8-K, we expect that Roku's ability to operate and meet its contractual obligations will not be impacted," a Roku spokesperson said in a statement to CNBC. [Roku](/quotes/ROKU/) has $487 million of cash and cash equivalents in uninsured deposits at failed [Silicon Valley Bank](/quotes/SIVB/), the streaming media company said in an SEC [filing](https://www.sec.gov/ix?doc=/Archives/edgar/data/0001428439/000142843923000010/wk-20230310.htm) Friday.

PRNewswire/ -- Brex is offering an emergency bridge credit line to startup customers to support payroll and other operational spend needs.

Brex empowers the next generation of businesses with integrated corporate cards and spend management software. Brex will review accounts as quickly as possible, and release emergency funds into customers' Brex Business accounts upon approval. Additional information on the structure of Brex accounts can be found

One of the biggest US banks faced a bank run with customers racing to withdraw their cash.

“Our banking system is in a fundamentally different place than it was, you know, a decade ago,” said Cecilia Rouse, chair of the White House Council of Economic Advisers. The panic on Wall Street led to the demise of Lehman Brothers, a firm founded in 1847. The biggest banks — those most likely to cause a widespread economic meltdown — have healthy balance sheets and plenty of capital. Because major banks had extensive exposure to one another, it led to cascading breakdown in the global financial system, putting millions out of work. Banks have also been impacted by the increase in interest rates. It had total assets of more than $300 billion.

SVB Financial Group's efforts to raise money have failed and the troubled bank was in talks to sell itself, CNBC reported on Friday, as a crisis at the ...

Global borrowing costs have risen at the fastest pace in decades over the last year as the Federal Reserve lifted U.S. The technology sector has been hit hard in the past few months and stress has appeared in other corners of the market as rates rise. [(.SPXBK)](https://www.reuters.com/quote/.SPXBK) dropped 4.2% on Friday after a 6.6% decline on Thursday, while the KBW Regional Banking index [(.KRX)](https://www.reuters.com/quote/.KRX) was down 5.3%. But rising costs of deposits and possible deposit withdrawals are likely to pressure sector earnings," Mark Haefele, Chief Investment Officer at UBS Global Wealth Management, wrote in a note. Rising interest rates have caused the price of such bonds to fall, feeding investor concerns that other banks might also be vulnerable. Commerzbank, one of Germany's largest banks, for example, played down any threat from SVB, saying it did not see "a corresponding risk for us". The brutal rout in the lender's stock which began on Thursday spilled over into other U.S. Treasuries at a loss. Neil Wilson, Chief Market Analyst at Markets.com, said that the SVB episode could be the "straw that breaks the camel's back" for banks after worries about ever higher interest rates and a fragile U.S. Federal Reserve and other central banks to fight inflation by ending the era of cheap money is exposing vulnerabilities in the market. "The volatility we are seeing among some of the banks is a reminder that sharp increases in interest rates will increase areas of fragility," said Ronald Temple, chief market strategist at Lazard. Register for free to Reuters and know the full story

Ashley Tyrner opened an account with Silicon Valley Bank for her company, FarmboxRx, two years ago. She was setting out to raise venture capital and knew ...

notice, taped by the entrance, that said the regulator was in control. A trickle of customers walked up to Silicon Valley Bank’s branch in Menlo Park, Calif., on Friday afternoon and discovered that its doors were locked. Sydecar, a service that facilitates venture capital deals, shared a list of the banks it uses that were not affected. For part of Thursday, Brex received billions of dollars in deposits from several thousand companies, a person with knowledge of the situation said. Silicon Valley Bank was also a bank to more than 2,500 venture capital firms, including Lightspeed, Bain Capital and Insight Partners. Her despair was part of the fallout across the start-up ecosystem from the failure of Silicon Valley Bank. Butler said he had been prepared for a big crunch, given the doom and gloom swirling around the industry. “The first thing you think about is survival,” he said. The implosion rattled a start-up industry already on edge. Entrepreneurs raced to get loans to make payroll because their money was frozen at the bank. “It’s the worst 24 hours of my life.” [financial instability at the bank](https://www.nytimes.com/2023/03/09/business/silicon-valley-bank-investors-worry.html), she rushed to move FarmboxRx’s money into two other bank accounts.

US regulators have shut down Silicon Valley Bank (SVB) and taken control of its customer deposits in the largest failure of a US bank since 2008.

"The average Joe should be fine," he added, but he said tech firms would likely find it even harder to raise money. "Silicon Valley Bank would not have lost money if they hadn't run out of cash to give back to their customers," he said. It now employs more than 8,500 people globally, though most of its operations are in the US. Even businesses without direct business were affected, like customers of Rippling, a firm that handles payrolls software and had used SVB. "I'm on my way to the branch to find my money right now. And then this morning, it was there. Shares saw their biggest one-day drop on record on Thursday, plunging more than 60% and fell further in after-hours sales before trading was halted. "It was pending. And then this happens." This is one of those moments," one start-up founder told the BBC. "The issue was that people wanted money and they didn't have it - they had it invested and those investments were down." US regulators have shut down Silicon Valley Bank (SVB) and taken control of its customer deposits in the largest failure of a US bank since 2008.

“I don't think this is 2008,” said Sheila Bair, who ran the FDIC during the crisis. But she called the failure “an important reminder that banks heavily reliant ...

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Shutdown and takeover of bank by regulators can be traced to the Fed raising interest rates and risk-averse investors.

This spooked investors such as General Atlantic that SVB had lined up for the stock sale, and the capital raising effort collapsed late on Thursday. Its shares ended trading on the day down 60%, as investors fretted that the deposit withdrawals might push it to raise even more capital. As higher interest rates caused the market for initial public offerings to shut down for many startups and made private fundraising more costly, some Silicon Valley Bank clients started pulling money out to meet their liquidity needs.

The bank had $209 billion in assets at the end of 2022. Bank failures can come from various causes: fraud, bad lending or a mis-match of assets and liabilities.

So when it appeared to the corporate depositors that Silicon Valley Bank was in trouble, the smart and easy response was to withdraw money. Still, the publicly-available financials suggest to me that the bank was still solvent when it was closed—solvent but in trouble. Second, understand how quickly assets can be converted to cash to meet the creditors’ demands. Those assets have real value but cannot be converted into cash quickly, meaning that some depositors would not be able to get their money immediately. As more money left the bank, it probably sold off securities. Most banks put the bulk of their assets into loans, but most banks have many small depositors who won’t need their money suddenly. The 10-year treasury bond, for example, closed the year at 3.88% but hit 4.08% in early March. So Silicon Valley Bank put most of its asset into U.S. Unfortunately, the best yields are usually found on long-term bonds rather than short-term bills. A bank takes in deposits from customers, who could be individuals or businesses. Bank failures can come from various causes: fraud, bad lending or a mis-match of assets and liabilities. Most of their deposits came from large companies that were part of the tech sector.

The implosion of Silicon Valley Bank could force hundreds of tech startups to lay off workers or shut down completely. It remains unclear how much, if any, ...

"At this time, the company does not know to what extent the company will be able to recover its cash on deposit at SVB," officials at Roku wrote of what amounts to about 26% of the company's cash. "This can be an existential risk to competition and innovation in the American economy for the next decade." Any amount above that will result in a "receivership certificate." "Venture capital funding had already been in a contraction mode," Tan said. "We woke up this morning hoping the money would be in that JPMorgan bank account, and it was not." Eventually, Silicon Valley Bank would come to do business with nearly half of all U.S. Will they have to take out personal loans to keep the business running? Do they have to furlough workers?" Stefan Kalb was in the middle of a meeting around 1 p.m. While he declined to provide the exact amount, he noted that Shelf Engine has raised more than $60 million from investors. "It's these services that startups couldn't get elsewhere." The following day, it was under water.

SVBUK's other assets and liabilities would be managed in the insolvency by the bank liquidators and recoveries distributed to its creditors. SVBUK has a limited ...

News // Minutes The Bank of England, absent any meaningful further information, intends to apply to the Court to place Silicon Valley Bank UK Limited (‘SVBUK’) into a Bank Insolvency Procedure. A Bank Insolvency Procedure would mean that eligible depositors are paid out by the FSCS as quickly as possible up to the protected limit of £85,000 or up to £170,000 for joint accounts.

Dozens of young Indian startups backed by the likes of YC, Accel, Sequoia India, Lightspeed, SoftBank and Bessemer Venture Partners banked with Silicon Valley ...

The US, and the technology sector which were among its biggest customers, face another Lehman Brothers moment with the failure of Silicon Valley Bank.

"A lot of observers were wondering about the debt piling up on credit cards or in the office real estate market. A start-up boss, he used the bank to pay his employees and is worried about them. In Paris, Société Générale lost 4.49 per cent, BNP Paribas 3.82 per cent and Crédit Agricole 2.48 per cent. agency responsible for guaranteeing deposits, the Federal Deposit Insurance Corporation (FDIC). Little known to the general public, SVB had specialised in financing start-ups and had become one of the largest banks in the US by asset size: at the end of 2022, it had $209 billion (€196 billion) in assets and about $175.4 billion (€164.5 billion) in deposits. US regulators rushed to seize the assets of Silicon Valley Bank (SVB) on Friday after a run on the bank, the largest failure of a financial institution since the height of the financial crisis more than a decade ago.

British arm of California-based lender applied for £1.8bn in liquidity as its parent company collapsed.

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It's safe to say, though, that none of the disaster scenarios envisaged the kind of financial implosion that struck this week at SVB Financial, the parent ...

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DealBook unpacks what caused the biggest U.S. bank failure since the 2008 financial crisis — and what might come next.

Here’s an interesting discussion from the Vulture podcast “Into It” about why the Oscars [aren’t rewarding blockbusters](https://www.vulture.com/2023/03/will-the-oscars-reward-blockbuster-movies.html). (The Economist) [“M*A*S*H” episode](https://clear-vivid-with-alan-alda.simplecast.com/episodes/alan-chats-with-the-bots)for Alan Alda and Mike Farrell, stars of the 1970s TV comedy, to read. [rethinking the ceremony](https://www.nytimes.com/2023/03/09/business/media/academy-awards-broadcast.html)to hold on to viewers — and preserve its own future. Gulden didn’t have to travel far; Puma and Adidas are based in the same Bavarian city, Herzogenaurach. [an Italian highway](https://www.instagram.com/p/CRlFry4LQls/), A24 had the same ambitions as predecessors like Miramax: Produce critically lauded hits. The rub is what possible suitors think about spending on a studio whose movies have never been financial home runs, in an age of increasingly tight budgets. There will be a detailed post-mortem of the bank’s failure in the coming weeks and months. The bank’s management — with the help of Goldman Sachs, its adviser — chose to raise new equity from the venture capital firm General Atlantic and also to sell a convertible bond to the public. The Luxembourg-based firm spent billions to acquire stakes in the commercial arm of La Liga, Spain’s leading soccer league; the Indian Premier League cricket competition; and the Six Nations rugby tournament. That left time for investors — and, more important, clients — to start scratching their heads and sow doubt about the firm, leading to an exodus of deposits. [sell $21 billion of bonds at a $1.8 billion loss](https://www.reuters.com/business/finance/what-caused-silicon-valley-banks-failure-2023-03-10/), in large part, it appears, because many of those bonds were yielding an average of only 1.79 percent at a time when interest rates had risen drastically and the bank was starting to look like an underperformer relative to its peers.

CEO Greg Becker personally led the bank's half-million-dollar push to reduce scrutiny of his institution – and lawmakers obliged.

Becker [left the board](https://www.investing.com/news/stock-market-news/ceo-of-failed-silicon-valley-bank-no-longer-a-director-at-sf-fed-3027959?ref=the-lever) on Friday. [wrote](https://www.federalreserve.gov/SECRS/2019/August/20190806/R-1658/R-1658_062119_134209_447374886406_1.pdf?ref=the-lever) in a comment on the Federal Reserve’s proposal. [appeared before a Senate panel](https://www.govinfo.gov/content/pkg/CHRG-114shrg94375/pdf/CHRG-114shrg94375.pdf?ref=the-lever) to push legislators to exempt more banks – including his own – from new regulations passed in the wake of the 2008 financial crisis. [Senate](https://www.senate.gov/legislative/LIS/roll_call_votes/vote1152/vote_115_2_00054.htm?ref=the-lever) by 50 Republicans and 17 Democrats, including the Democratic Virginia Senator Mark Warner, for whom Becker held a fundraiser at his Menlo Park, California, home in 2016, according to an [invitation](http://politicalpartytime.org/party/41385/?ref=the-lever) obtained by the Sunlight Foundation and OpenSecrets. Recall that the smallest among this class of banks is over twice the size of the $50bn banks that automatically required enhanced prudential regulation under the Dodd-Frank Act as originally enacted.” “Given the low risk profile of our activities and business model, such a result would stifle our ability to provide credit to our clients without any meaningful corresponding reduction in risk.” [elected](https://www.frbsf.org/our-district/press/news-releases/2019/leadership-and-membership-announcements-board-of-directors/?ref=the-lever) to serve on the board of directors at the Federal Reserve Bank of San Francisco. The bank’s political action committee also donated a total of $10,000 to Warner’s campaigns in the [2016](https://www.opensecrets.org/political-action-committees-pacs/silicon-valley-bank/C00333658/candidate-recipients/2016?ref=the-lever) and [2018](https://www.opensecrets.org/political-action-committees-pacs/silicon-valley-bank/C00333658/candidate-recipients/2018?ref=the-lever) election cycles. The bank [federal](https://lda.senate.gov/filings/public/filing/40f1aec7-9dbf-46da-a20e-2ce2f5af80cc/print/?ref=the-lever) [disclosure](https://lda.senate.gov/filings/public/filing/1a82c199-21a1-447c-98ca-78decd6cc97e/print/?ref=the-lever) [records](https://lda.senate.gov/filings/public/filing/e5be3075-8267-42a0-8aa2-aa1725d4e7d4/print/?ref=the-lever) [show](https://lda.senate.gov/filings/public/filing/276fe661-9582-4f96-995d-151d133db5e2/print/?ref=the-lever) the bank was lobbying lawmakers on “financial regulatory reform” and the Systemic Risk Designation Improvement Act of 2015 – a bill that was the precursor to [legislation](https://www.congress.gov/bill/115th-congress/senate-bill/2155/text?ref=the-lever) ultimately signed by President Donald Trump that increased the regulatory threshold for stronger stress tests to $250bn. [published](https://www.levernews.com/svb-chief-pressed-lawmakers-to-weaken-bank-risk-regs/) in the Lever [reportedly](https://fortune.com/2023/03/10/silicon-valley-bank-chief-risk-officer/?ref=the-lever) did not have a chief risk officer in the months leading up to the collapse, while more than [90% of its deposits](https://twitter.com/business/status/1634211584657571843?s=20&ref=the-lever) were not insured.

Employees of Silicon Valley Bank were offered 45 days of employment at 1.5 times their salary by the Federal Deposit Insurance Corp, the regulator that took ...

The frenetic two-day run on the bank [blindsided observers and stunned markets](/markets/us/global-markets-banks-sector-analysispix-2023-03-11/), wiping out more than $100 billion in market value for U.S. at the end of last year, with about $209 billion in assets and $175.4 billion in deposits. SVB ranked as the 16th biggest bank in the U.S. [rushed to withdraw](/markets/us/silicon-valley-banks-demise-began-with-downgrade-threat-sources-2023-03-11/) their deposits. SVB had a workforce of 8,528 at the end of last year. Register for free to Reuters and know the full story

Traders have been watching this week for signs of contagion in the financial sector from developments surrounding startup-focused Silicon Valley Bank and ...

cryptocurrency firm Circle has $3.3 billion of its $40 billion of USD Coin reserves at the collapsed lender Silicon Valley Bank, the company said in a tweet on Friday. Circle said in another tweet on Friday that it and USDC continue to operate normally while it waits to see how SVB's receivership will affect its depositors, while several crypto companies took to Twitter to deny any exposure to the collapsed SVB. cryptocurrency firm Circle said it has $3.3 billion of its $40 billion of USD Coin reserves at the collapsed lender Silicon Valley Bank.

LONDON, March 11 (Reuters) - By Elizabeth Howcroft and Rishabh Jaiswal. Stablecoin USD Coin (USDC) lost its dollar peg and slumped to an all-time low on ...

The largest, Tether, has a market cap of $72 billion, according to CoinGecko. USDC is the second-biggest stablecoin with a market cap of $37 billion. Stablecoin USD Coin (USDC) lost its dollar peg and slumped to an all-time low on Saturday after Circle, the U.S. bank failure since the 2008 financial crisis, roiling global markets and stranding billions of dollars belonging to companies and investors. USDC's price usually holds close to $1, making Saturday's drop unprecedented. It recovered slightly to trade around $0.90 by 1120 GMT.

The announcement from Circle overnight on Friday prompted the company's USDC crypto token to lose its peg to the dollar. US exchange Coinbase said it was ...

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Stablecoin USD Coin (USDC) lost its dollar peg and slumped to an all-time low on Saturday after Circle, the US firm behind the coin, revealed some of the ...

The largest, Tether, has a market cap of $72 billion, according to CoinGecko. USDC is the second-biggest stablecoin with a market cap of $37 billion. USDC’s price usually holds close to $1, making Saturday’s drop unprecedented. It recovered slightly to trade around $0.90. [tweet](https://twitter.com/circle/status/1634341007306248199) Friday it and USDC “continue to operate normally” while the firm waits for clarity on what will happen to Silicon Valley Bank depositors. [collapsed lender Silicon Valley Bank](http://www.cnn.com/2023/03/11/business/svb-collapse-roundup-takeaways/index.html), the company said in a [tweet](https://twitter.com/circle/status/1634391505988206592) Friday.

The implosion of the Silicon Valley bank led to finger-pointing, as executives and investors jumped on the crisis for their own messaging.

Silicon Valley Bank appears to have had a relatively small footprint in the crypto industry. “There’s no crypto regulator insuring accounts for $250,000,” said Danny Moses, an investor at Moses Ventures who is known for his role in predicting the 2008 crisis in “The Big Short.” The fact that the F.D.I.C. “If this was an unregulated crypto bank, then the money could just disappear,” Mr. It became insolvent after investors and depositors caused a run on its holdings, the order said. The news set off fear in the tech industry, as start-ups rushed to get their money out. In November, FTX, the crypto exchange run by A so-called stablecoin designed to maintain a constant value of $1 suddenly dipped in price, sending shudders through the market. But crypto executives and investors — who have endured a year of near-constant upheaval — seized on the moment to preach and scold. And the finger-pointing went in both directions. [said](https://twitter.com/jaredgrey/status/1634341626121187330). Their vision of an alternate financial system, unmoored from big banks and other gatekeepers, was [better](https://twitter.com/ErikVoorhees/status/1634011983853895681).