Regulators closed down one in all Silicon Valley’s most necessary banks on Friday, marking the most important financial institution failure because the Great Recession and the second-biggest in U.S. historical past.
Earlier within the day, Silicon Valley Bank suspended buying and selling of its plummeting shares and depositors rushed to withdraw their cash. As one of many principal establishments the place start-ups deposited their venture-backed investments, SVB’s failure despatched shock waves by the business. The turmoil comes because the tech firms retrench and shed staff, whereas rising rates of interest spark indicators of broader monetary misery.