Biggest bankruptcy since the 2008 US financial crisis
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In the United States, Silicon Valley Bank, the 16th bank in terms of assets, which specialized in lending to technology startups in Silicon Valley, went bankrupt. SVB’s problems are attributed to the fact that he placed deposits in securities with a long maturity, in particular mortgage bonds and US Treasury bonds, which were considered safe. After the Fed sharply raised the base rate, these securities fell in price. The situation began to develop rapidly when on March 8 SVB announced an additional issue necessary to cover losses. The next day, its shares collapsed by 60%, and on March 10, California regulators declared the bank bankrupt and transferred it to external management.
The SVB bankruptcy was the largest in the US since the 2008 crisis, and the SVB itself became the second-largest bankrupt in US history after Washington Mutual Bank. The financial authorities have announced that they will not bail out the bankrupt bank, but are working to help depositors.
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