US Silicon Valley bank with
total assets of more than 270 trillion has gone bankrupt. It collapsed just two days after the crisis theory came out, sending financial markets around the world into a tailspin.

How it will affect us, our Washington correspondent reports on the South.

A Silicon Valley bank that has been a source of funding for startups in the
western United States.

The sudden news of bankruptcy devastated customers.

[US Silicon Valley bank customer: All the company money is in the bank. I don't know how to pay my employees. I don't know what to do.]

The Fed's sharp rate hikes were the biggest culprits.

When the value of banks' bonds plummeted due to rising interest rates, they sold their bonds at a loss, which collapsed two days after the crisis as stock prices crashed and deposits collided.

With total assets of $2090 billion and KRW 276 trillion, it is the 16th largest bank in the United States and the second largest bankruptcy in history.

In the sudden bad news, the New York stock market fell all at once.

Asian stock markets, which finished their day before bankruptcy, were also rocked by news that the market capitalization of the four largest U.S. banks had evaporated by $2 billion the day before.

U.S. financial authorities responded immediately.

[Janet Yellen/U.S. Treasury Secretary: We are watching this very carefully. When banks suffer financial losses, it is a matter of concern and should be treated as such.]

As a bank specialized in startups, there are many predictions that the impact will be limited, but it is too early to be reassured.

This is because a rate hike is inevitable for the time being.

The 4 financial crisis also started with interest rate hikes.

The problem is anxiety.

If the U.S. financial authorities fail to catch investor and customer anxiety and sparks large banks, the financial crisis could be repeated as stock prices crash and massive withdrawals occur.

This is why our financial authorities should also keep a close eye on this situation.

(Video Interview: Oh Jeong-sik, Video Editing: Kim Byung-jik)