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Day: March 11, 2023

Collapse of Silicon Valley Bank

What happened? The Silicon Valley Bank (SVB) said on 8th March 2023, that it was planning to raise $2bn in capital after losses on bonds it sold. This spooked investors and customers which resulted in the share price drop by about 60% by the next day. This resulted in customers withdrawing cash rapidly resulting in a “bank run”. Share price continued to drop as a result. According to Claire Lee, ex SVB employee, This is a comedy of errors; without the comedy. Time of death: after questionable decisions and clumsy communications, panic ensued on March 9th — then clients withdrew…