On March 10, Silicon Valley Bank, one of the most prominent lenders in the start-up ecosystem, collapsed. Federal regulators stepped in to allay fears and limit risk in the broader financial system.
Here is a timeline of major events related to the bank’s collapse and its aftermath.
March 8
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Silvergate Capital, a cryptocurrency-focused bank, announced it would cease operations and liquidate its assets after a bank run forced the California lender to sell a chunk of its debt securities.
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Silicon Valley Bank concerned investors when it said it needed to shore up its balance sheet and raise $2 billion in capital. It was forced to sell a bond portfolio at a $1.8 billion loss.
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In a letter to customers, Greg Becker, the chief executive of Silicon Valley Bank, said the bank enjoyed the “financial position to weather sustained market pressures,” but he noted that customer deposits had come in lower than forecast in February. Moody’s, a credit ratings firm, downgraded the bank’s bond rating and slashed its outlook to negative, from stable.
Vivian Giang and Mike Dang
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