US regulators closed Silicon Valley Bank this Friday, which has already become the largest bank failure in the United States since the 2008 financial crisis . Silicon Valley Bank , a lauded institution for new technology companies, closed last year with about $209 billion (€196,104.7 million, at the current exchange rate) in assets and around $175 billion (€164,202.5 million) ) on deposits, according to the Federal Deposit Insurance Corporation (FDIC), the agency that helps protect customers' deposits. The size of the bankruptcy has only been surpassed by the closure of Washington Mutual Bank during the mortgage crisis in 2008. Washington Mutual closed with 307 billion dollars (288,058.1 million euros) in assets and 188 billion (168,894 million euros) in deposits. SVB's collapse is a bigger shock than Washington Mutual's demise, which came after months of growing concern about the Seattle-based bank's risky mortgage lending . This time, SVB has gone from a seemingly stable financial institution to collapse in a matter of days.
Spain is safe from the Silicon Valley Bank earthquake: why we are far from being swept away by the crisis of the US startup bank The US banking system as a whole has also experienced a period of calm in recent years . In 2020 and 2021, there were no bank failures at all, compared to 25 in 2008, 140 in 2009, and 157 in 2010. Total assets of failed US banks by year The closure of Silicon Valley Bank has been ordered by the California Department of Financial Innovation and Asia Phone Number List Protection, after the bank's shares fell 60% following sales at losses of $21 billion (€19,704.3 million) in bond investments . Representatives for Silicon Valley Bank have not responded to Business Insider 's email request for comment on Friday. The mistake you make when brushing your teeth: it causes oral diseases and makes your breath stink The FDIC, which is now the official receiver of Silicon Valley Bank, has taken steps to protect customers.
The agency has communicated that it transferred the deposits insured by SVB to one called "National Insurance of the Bank of Santa Clara", according to its statement on Friday. The FDIC has also expressed that it is working to offer recoveries to uninsured customers, saying it would provide them with "an anticipated dividend within the next week." Before Washington Mutual, the bankruptcy of Continental Illinois National Bank & Trust in 1984 was the largest with $40 billion (€37.532 million) in assets, according to Reuters . Other interesting articles We have underestimated that savings cushion, which continues to cover consumption today," says Romero, but clarifies that "the loss of purchasing power weighs, and the cushion will end up being exhausted." This is something that, according to the Bank of Spain, is already happening. "In an environment of high inflation, families and companies—especially the most vulnerable— could have exhausted some of the cushions they had available ," he warns.