financials

banks

stocks

bonds

Silicon Valley Bank bit the dust

Silicon Valley Bank sparked chaos in the markets

​​Silicon Valley Bank Bit The Dust

**Why should I care?**

***Zooming in:*** *A run for their money.*

Even if it had somehow managed to raise the cash, the writing was probably already on the wall for SVB: the initial loss had spooked clients, with VC firms advising companies to consider withdrawing cash from the lender. And remember “[It’s A Wonderful Life](https://youtu.be/OTJCI1FNBfA?t=232)”? When anxious customers all try to pull their cash at the same time, you’ve got a classic [bank run](https://www.investopedia.com/terms/b/bankrun.asp) on your hands. All said, then, SVB wound up as the US’s second-biggest bank [failure](https://www.independent.co.uk/news/world/americas/silicon-valley-bank-collapses-fdic-b2298381.html) ever.



***The bigger picture:*** *Safety in size.*

The whole debacle caused a ripple effect in finance, with the four biggest US banks collectively shedding over $50 billion in market value on Thursday. After all, the US banking industry has over $600 billion in so-called paper losses – ones that only materialize when sold, like SVB's bonds. But America's top banks aren't really expected to go belly up: proportionately, they’ve got a whole lot less bound up in similar, troublesome investments, and that means that they’re much safer.



**Silicon Valley Bank** (SVB) [collapsed](https://news.bloomberglaw.com/crypto/silicon-valley-bank-collapses-enters-fdic-receivership) late last week.

**What does this mean?**

SVB is a heavyweight in the US startup arena, with almost half the country's venture-backed tech and life sciences startups among its clientele. But lately those businesses have been burning through cash reserves in order to stay afloat – and that means SVB’s once-brimming deposit pool evaporated to little more than a puddle. The bank responded to that problem with the bright idea of selling off some bonds to raise cash: problem is, SVB bought those bonds when tech was at its height, and their value’s plummeted as interest rates have climbed. The end result, then, was a sizable loss for SVB. That sparked worries the bank was running out of cash – sending shares plummeting – and when a share sale intended to fix the balance sheet failed, SVB wound up in regulators’ hands.



News Story

encryptedEmail

planSlug

slugOrId

ContentPieceQuery

viewer

authorization

content

SingleContentPiece_viewer

webSubscriptions

query ContentPieceQuery(
  $slugOrId: String
  $encryptedEmail: String
  $planSlug: String
) {
  viewer {
    authorization {
      roles {
        isAnonymous
      }
      ...SingleContentPiece_authorization
    }
    ...SingleContentPiece_viewer_2HyoJ4
    content(encryptedEmail: $encryptedEmail) {
      ...SingleContentPiece_content
      contentPiece(slugOrId: $slugOrId) {
        __typename
        ...SingleContentPiece_contentPiece
        canonicalLink
        id
      }
    }
    id
  }
}

fragment AnonymousPaywall_viewer_2HyoJ4 on Viewer {
  webSubscriptions {
    defaultWebPlan {
      ...PremiumAccountPromotionPanel_webPaymentPlan_2HyoJ4
    }
  }
}

fragment AudioOnlyBanner_contentPiece on ContentPieceInterface {
  __isContentPieceInterface: __typename
  headerImage {
    ...ServerImage_image
  }
  title
}

fragment Avatar_image on URLImage {
  original
}

fragment Block_block on ContentPieceBlock {
  __isContentPieceBlock: __typename
  __typename
  ... on TextBlock {
    id
    ...TextBlock_block
  }
  ... on ImageBlock {
    id
    ...ImageBlock_block
  }
  ... on QuoteBlock {
    id
    ...QuoteBlock_block
  }
}

fragment ContentFooter_contentPiece on ContentPieceInterface {
  __isContentPieceInterface: __typename
  id
  title
  deepLink
  canonicalLink
  slug
  hasChapters
  chapters {
    __typename
    id
    slug
  }
  mostRelevantTags(first: 10) {
    edges {
      node {
        __typename
        ...Tag_tag
        ... on Node {
          __isNode: __typename
          id
        }
      }
    }
  }
}

fragment ContentHeaderDetails_contentPiece on ContentPieceInterface {
  __isContentPieceInterface: __typename
  ...ContentMetadata_contentPiece
  ...ListenButton_contentPiece
  ...DownloadContentButton_contentPiece
  id
  title
  deepLink
  canonicalLink
  slug
  hasChapters
  chapters {
    __typename
    id
    slug
  }
  author {
    id
    byline
    profilePicture {
      ...Avatar_image
    }
  }
}

fragment ContentHeader_contentPiece on ContentPieceInterface {
  __isContentPieceInterface: __typename
  ...DefaultContentHeader_contentPiece
  ...EvergreenContentHeader_contentPiece
  contentPieceType {
    isEvergreen
  }
}

fragment ContentMetadata_contentPiece on ContentPieceInterface {
  __isContentPieceInterface: __typename
  byline
  consumptionTime
  dateUpdatedDisplay
  contentPieceType {
    isEvergreen
  }
}

fragment ContentPieceSEO_contentPiece on ContentPieceInterface {
  __isContentPieceInterface: __typename
  title
  imageForSeo: headerImage {
    url: full
  }
  subtitle
  firstPublishedAt
  id
  ... on PublicContentPiece {
    globalContentPieceId
  }
  byline
  seoTitle
  searchDescription
  canonicalLink
}

fragment ContentPieceSponsor_contentPiece on ContentPieceInterface {
  __isContentPieceInterface: __typename
  sponsoringCompany {
    id
    name
    link
    logo {
      ...ServerImage_image
    }
  }
}

fragment DefaultContentHeader_contentPiece on ContentPieceInterface {
  __isContentPieceInterface: __typename
  ...ContentHeaderDetails_contentPiece
  ...AudioOnlyBanner_contentPiece
  ...KeyInsights_contentPiece
  id
  title
  headerImage {
    ...ServerImage_image
  }
}

fragment DownloadContentButton_authorization on Authorization {
  roles {
    isB2bUser
  }
}

fragment DownloadContentButton_blocks on ContentPieceBlock {
  __isContentPieceBlock: __typename
  ... on TextBlock {
    textMarkdown
  }
}

fragment DownloadContentButton_contentPiece on ContentPieceInterface {
  __isContentPieceInterface: __typename
  id
  title
  blocks {
    __typename
    ...DownloadContentButton_blocks
    ... on Node {
      __isNode: __typename
      id
    }
  }
  chapters {
    __typename
    id
    title
    blocks {
      __typename
      ...DownloadContentButton_blocks
      ... on Node {
        __isNode: __typename
        id
      }
    }
  }
}

fragment EvergreenContentHeader_contentPiece on ContentPieceInterface {
  __isContentPieceInterface: __typename
  ...ContentMetadata_contentPiece
  ...ListenButton_contentPiece
  ...ContentPieceSponsor_contentPiece
  canonicalLink
  id
  deepLink
  title
  hasAudio
  slug
  hasChapters
  chapters {
    __typename
    id
    slug
  }
  headerImage {
    ...ServerImage_image
  }
  ...DownloadContentButton_contentPiece
}

fragment ImageBlock_block on ImageBlock {
  image {
    ...ServerImage_image
  }
  alt
  caption
}

fragment KeyInsightsBlock_contentPiece on ContentPieceInterface {
  __isContentPieceInterface: __typename
  keyInsightsBlocks {
    id
    textMarkdown
  }
}

fragment KeyInsightsCarousel_contentPiece on ContentPieceInterface {
  __isContentPieceInterface: __typename
  keyInsightsBlocks {
    id
    textMarkdown
  }
}

fragment KeyInsights_contentPiece on ContentPieceInterface {
  __isContentPieceInterface: __typename
  ...KeyInsightsCarousel_contentPiece
  ...KeyInsightsBlock_contentPiece
  keyInsightsBlocks {
    id
    textMarkdown
  }
}

fragment ListenButton_contentPiece on ContentPieceInterface {
  __isContentPieceInterface: __typename
  id
  title
  trackingTitle
  subtitle
  readingTime
  isPremium
  hasBlocks
  hasChapters
  hasAudio
  contentPieceType {
    name
    trackingName
  }
  ...AudioOnlyBanner_contentPiece
}

fragment LoggedInPaywall_viewer_2HyoJ4 on Viewer {
  webSubscriptions {
    defaultWebPlan {
      ...PremiumAccountPromotionPanel_webPaymentPlan_2HyoJ4
    }
  }
}

fragment MainContentSection_contentPiece on ContentPieceInterface {
  __isContentPieceInterface: __typename
  ...ContentPieceSEO_contentPiece
  ...ContentHeader_contentPiece
  ...ContentFooter_contentPiece
  title
  headerImage {
    ...ServerImage_image
  }
  globalContentPieceId
  trackingTitle
  subtitle
  firstPublishedAt
  readingTime
  isPremium
  deepLink
  hasBlocks
  hasChapters
  hasAudio
  id
  canonicalLink
  byline
  contentPieceType {
    name
    trackingName
  }
  blocks {
    __typename
    ...Block_block
    ... on Node {
      __isNode: __typename
      id
    }
  }
}

fragment PaywallBanner_contentPieceType on ContentPieceType {
  isAvailableForFreemium
}

fragment PaywallBanner_viewer_2HyoJ4 on Viewer {
  ...AnonymousPaywall_viewer_2HyoJ4
  ...LoggedInPaywall_viewer_2HyoJ4
}

fragment PremiumAccountPromotionPanel_webPaymentPlan_2HyoJ4 on WebPaymentPlan {
  amount
  currency
  currencySymbol
  interval
  promotionApplied(slug: $planSlug) {
    stripeDiscount {
      discountPct
      discountAmount
      id
    }
    id
  }
}

fragment QuoteBlock_block on QuoteBlock {
  quote
  caption
}

fragment ServerImage_image on URLImage {
  full
}

fragment SingleContentPiece_authorization on Authorization {
  ...authorization_authorization
  ...DownloadContentButton_authorization
  roles {
    isPreviewingContentAllowance
    isPreviewing
    isAnonymous
    hasPremiumSubscription
    isFreemium
  }
}

fragment SingleContentPiece_content on Content {
  ...authorization_content
  anonymousUserHasPremium
}

fragment SingleContentPiece_contentPiece on ContentPieceInterface {
  __isContentPieceInterface: __typename
  ...AudioOnlyBanner_contentPiece
  ...authorization_contentPiece
  ...MainContentSection_contentPiece
  globalContentPieceId
  trackingTitle
  isPremium
  hasBlocks
  hasChapters
  hasAudio
  contentPieceType {
    name
    trackingName
    isAvailableForFreemium
    ...PaywallBanner_contentPieceType
  }
  chapters {
    __typename
    id
    slug
  }
}

fragment SingleContentPiece_viewer_2HyoJ4 on Viewer {
  ...PaywallBanner_viewer_2HyoJ4
}

fragment Tag_tag on GenericTag {
  __isGenericTag: __typename
  ... on AssetClassTag {
    name
    slug
  }
  ... on GeographyTag {
    name
    slug
  }
  ... on ContentTag {
    name
    slug
  }
}

fragment TextBlock_block on TextBlock {
  textMarkdown
}

fragment authorization_authorization on Authorization {
  roles {
    isPreviewingContentAllowance
    isPreviewing
    isAnonymous
    hasPremiumSubscription
    isFreemium
  }
}

fragment authorization_content on Content {
  anonymousUserHasPremium
}

fragment authorization_contentPiece on ContentPieceInterface {
  __isContentPieceInterface: __typename
  isPremium
  contentPieceType {
    isAvailableForFreemium
  }
}


​​Silicon Valley Bank Bit The Dust

​​Silicon Valley Bank Bit The Dust

BECOME A SMARTER INVESTOR

Silicon Valley Bank Bit The Dust

Silicon Valley Bank Bit The Dust