Silicon Valley Bank is dead. The institution that was a major financier for venture capitalists, tech start-ups and other Silicon Valley outfits has collapsed. Enter: the federal government.
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When depositors who belonged to Silicon Valley Bank started quickly withdrawing their money recently, it caused a “bank run.” This led to the ruin of the tech-focused bank, the largest bank failure since the Great Recession. Now the federal government is stepping in to ensure customers are still able to access their money and company payrolls are distributed.
Silicon Valley Bank catered to start-ups, venture capitalist groups, and even companies like Pinterest and Airbnb. Reporter Jeff Stein talks about why the government is taking such drastic measures to make sure all deposits will be available this week.
