It was a shock to the financial system. O Silicon Valley Bank, considered one of the largest banks in the world of technology, ran out of money and went down in history as the largest American bank to fail since the 2008 financial crisis.
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As a result, United States monetary authorities entrusted control of deposits – around US$175 billion, including money from technology giants – under the control of the Federal Deposit Insurance Corporation (FDIC).
The FDIC will reopen the bank's branches on Monday (13) and will authorize, in a curto term, for the institution's clients to make withdrawals of up to 250.000 dollars (around 1,3 billion reais), an amount established in the United States by the Federal Deposit Insurance Corporation.
But what happened?
A few days ago, the bank began a series of emergency measures to avoid going into the hole, citing requests for withdrawal of resources from customers and a drop in their investments.
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According to a report by Estadão, the bank was still working with consultants this Friday (10) to try to sell the institution and had to stop trading its shares on the Stock Exchange after a significant drop.
According to the report, Silicon Valley Bank has been facing problems for more than a year, and is being shaken “by absolutely outdated decisions” and by withdrawals from startups that saw their financing dry up. This forced the institution to sell some of its investments at the wrong time.
On Wednesday, the 8th, the bank admitted that it had lost almost US$2 billion when it was forced to sell some of its holdings.
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(With AFP)
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