SVB Crisis: US government’s refusal to give relief package to Silicon Valley Bank, investors in fear of bank sinking, know how this crisis came

March 12, 2023March 12, 2023

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SVB Crisis: Due to the Silicon Valley Bank (SVB) crisis in America, there has been a big decline in the stock market of other countries including India. This is the second big case of bank sinking in the US. This crisis has created panic.

Silicon Valley Bank Latest Update: The request made to the US government to end the Silicon Valley Bank Crisis was in vain. The US government has refused to give a relief package to Silicon Valley Bank. If the package is not received, this big bank will now collapse completely.

America’s 16th largest bank closed
Let us tell you that the Silicon Valley Bank of America has been closed on Friday. This bank was the 16th largest bank in America. There are accounts of citizens of many countries including Indians here, investors’ money is believed to have been wasted when the system deteriorated. The bank also has deposits of thousands of account holders. Many startups were also involved in this, so their loot has also sunk. On March 10, the news of the closure of Silicon Valley Bank spread like a fire. The latest news is that now the Federal Deposit Insurance Corporation (FDIC) will take it over.

Shares fall 70% on continuing losses and lack of funding
According to the news agency Reuters, the reason behind the closure of Silicon Valley Bank was its continuous losses and lack of funding. Due to failure in both these cases, the shares of SVB Financial Group, the parent company of Silicon Valley Bank, fell by 60% on 9 March. By March 10, after a fall of about 70% in the shares of this bank (Silicon Valley Bank Share), it was barred from trading. Due to this crisis, there has been a decline in the stock market of not only America but also of other countries including India.

Second major case of bank sinking in American history
Regulators ordered the closure of Silicon Valley Bank on 10 March. This is considered to be the biggest failure in the history of America after the 2008 financial crisis. At the same time, this is another big case of bank sinking.
On the other hand, the responsibility of protecting the amount of customers deposited in the bank is now on the Federal Deposit Insurance Corporation (FDIC). Still those who have accounts in SVB are in awe. They are scared of not getting their money.