Silicon Valley Bank, which has been a moneyline for
startups in the United States, has gone bankrupt. Attention is being paid to the ramifications for startups and the financial sector.
This is a report by reporter Jihyun Cho.
Silicon Valley Bank is a specialized technology bank headquartered in Santa Clara, California, with 17 branches.
With $2 billion in assets and KRW 90 trillion, it is the 276th largest bank in the United States, with more than 16% of technology healthcare ventures in the western United States as customers.
However, in recent years, as the inflow of new funds has stopped and customers have accelerated their deposit withdrawals, financial authorities have quickly shut down the bankruptcy, citing insolvency.
It is the second-largest bank failure in the U.S. since Washington Mutual Bank in 40.
[Dean Nelson/Startup CEO: Everybody is trying to figure out what to do now, because if you put it all in this bank and it closes, it's very difficult to run the company.]
As 2008% of the bank's total deposits of 2 trillion won are deposited with 232,86 dollars and 25 million won of our own money, there are concerns about the bankruptcy of startups.
On Wall Street, some bank stocks tumbled more than 3% intraday.
European stocks also continued their decline following news of bank failures, with large European bank stocks plunging more than 3%.
Cryptocurrencies also went on a sell-off, evaporating $20 billion in 4 hours.
U.S. government officials and financial experts believe it is unlikely that the outbreak will spread across the financial sector, including large banks.
Rouse, chairwoman of the White House Council of Economic Advisers, emphasized at a briefing that "the banking system is fundamentally different than it was a decade ago," and Treasury Secretary Janet Yellen warned against excessive sense of crisis.
(Video editing by Kim Byung-jik)
The 2nd largest bank failure in U.S. history... Financial markets slump
A Silicon Valley bank that has been a moneyline for startups in the United States has gone bankrupt. Attention is being paid to the ramifications for startups and the financial sector. This is a report by reporter Jihyun Cho.