US financial regulators have announced that a California-based bank known for lending to startups has filed for bankruptcy.
The total assets of this bank are more than 200 billion dollars, or about 28 trillion yen in Japanese yen, making it the second largest bank failure in the United States after the failure of a savings bank in 2008.
FDIC = Federal Deposit Insurance Corporation and other American financial authorities announced on the 10th that California-based "Silicon Valley Bank" went bankrupt due to insolvency, and the FDIC took over the assets as a trustee.
Founded in 1983, "Silicon Valley Bank" has 17 stores in California and eastern Massachusetts and was known for its active financing of IT-related start-up companies.
According to the FDIC, total assets totaled approximately $209 billion at the end of last year, or approximately ¥28 trillion in Japanese yen. It means that it will be the second scale.
Regarding the reason for the bankruptcy, the American media reports that the loss was caused by the sale of bonds whose prices fell due to the interest rate hike, and the management deteriorated, and the withdrawal of deposits from customers occurred one after another.