The financial world woke up to the shocking news of Silicon Valley Bank being shut down on Friday. The collapse of the 16th largest lender in the United States is considered as the biggest bank failure since the Washington Mutual fell more than a decade ago.
On 8 March SVB sold about $21 billion of securities from its portfolio with a plan to reinvest ,which will result in an after-tax loss of $1.8 billion for the first quarter.
On 9 March SVB shares plunged by 41 per cent( their biggest decline since 1998) after the announcement by SVB that it had sold all of the available-for-sale securities in its portfolio and updated its forecast for the year with a sharp decline in net interest income(NII).
On 10 March :California regulator shut Silicon Valley Bank and appointed the Federal Deposit Insurance Corporation as receiver, Reuters reported.
