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2023-03-16
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height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nSVB Collapse: A Timeline\n</h2>\n\n<h4 class=\"meta\">\n\n\n2023-03-16 16:16 GMT+8 <a href=https://www.businesstimes.com.sg/companies-markets/banking-finance/svb-collapse-timeline><strong>The Business Times</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>A summary of events leading up to the implosion of Silicon Valley Bank (SVB) and its aftermath.The build-up:The California-based bank is deeply embedded in the US startup ecosystem as it is the only ...</p>\n\n<a href=\"https://www.businesstimes.com.sg/companies-markets/banking-finance/svb-collapse-timeline\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{},"source_url":"https://www.businesstimes.com.sg/companies-markets/banking-finance/svb-collapse-timeline","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1162421488","content_text":"A summary of events leading up to the implosion of Silicon Valley Bank (SVB) and its aftermath.The build-up:The California-based bank is deeply embedded in the US startup ecosystem as it is the only publicly-traded US bank that focuses on Silicon Valley and tech startups.Following the Fed’s campaign of aggressive rate hikes amid elevated inflation, and a broader downturn in the startup and venture capital industry, SVB suffered high deposit outflows (in other words, withdrawals) as startups tapped much-needed funds in the bank.Wednesday, March 8:Parent company SVB Financial Group dumps US$21 billion of portfolio securities and sells US$2.25 billion of its SVB shares, which will incur after-tax loss of US$1.8 billion.The bank hurtles towards a run as withdrawals soar. Customers jumping ship include prominent VCs like Peter Thiel’s Founders Fund, Coatue Management and Union Square Ventures.Thursday, March 9:Investors, and depositors pull as much as US$42 billion in one day, pushing SVB’s stock down by over 60 percent, with its bonds posting record declines. With the bank on the brink of a run, CEO Greg Becker urges clients to “stay calm”.Friday, March 10:SVB Financial Group shares sink another 47 percent. Trading halted. The bank reportedly explores sales after its stock sale effort fails.Collapse triggers US banking sector rout; S&P 500 banks index drops 4.2 percent, after a 6.6 percent slide on Thursday. European banks hit too.Federal Deposit Insurance Corp (FDIC) puts bank in receivership and manages the bank’s assets to ensure all depositors and creditors are paid.In the UK, regulators declare SVB no longer viable after default on the central bank loan. Its branch there stops accepting deposits and payments.Saturday, March 11:Over 250 tech leaders wrote to UK Chancellor Jeremy Hunt, appealing for government intervention – or startups all over the world face involuntary liquidation. In the US, over 3,500 CEOs and founders warn US Treasury Secretary Janet Yellen more than 100,000 jobs at risk.Cryptocurrencies also take a hit, with USD Coin, the second-largest stablecoin, sliding to below 85 cents.USD Coin issuer Circle Internet Financial has US$3.3 billion in reserves at SVB. Circle claims it would cover any shortfall, bringing USD Coin to US$1.By nightfall, FDIC starts the auction for SVB, with final bids due Sunday afternoon.Sunday, March 12:Yellen signs a resolution that “fully protects all depositors”; depositors to have access to money from Monday.New York regulators close Signature Bank but assure depositors they’ll get money back. It says no taxpayer will bear either bank’s losses. These are not bailouts as equity and bondholders will still lose out.Coinbase disclosed on Twitter it has US$240 million in deposits with Signature Bank but facilitating client cash transactions with other banks for time being.Also hit by Signature Bank, Circle works to set up a new transaction banking partner. In China, six Hong Kong-listed Chinese companies declare deposits with SVB, noting they are “immaterial” in terms of exposure to the bank’s failure. SVB’s China JV with Shanghai Pudong Development Bank says it has sound corporate structure and independent balance sheet.Monday, March 13:FDIC transfers SVB deposits to the new bridge bank for customers’ access. The Silicon Valley Bank NA CEO sends letter to clients that it’s business as usual in the US, with cross-border transactions to commence in the coming days. Markets not impressed, with sharp dive by Europe bank stocks.Traders push up value of SVB senior unsecured bonds even though US government said investors would be “wiped out”.In Singapore, analysts remain sanguine noting that Singapore’s Big Three are well-capitalised and have ample provisions to weather crises. Monetary Authority of Singapore says the Singapore banking system has“insignificant exposures”and remains “sound and resilient”. It stands ready to provide liquidity if needed. Singapore VCs and startups prompted to review their compliance and risk controls.In the UK, HSBC announces strategic purchase of SVB’s British branch for £1It cites the latter’s exposure to the tech and life science sectors. Bank of England says the deal means all depositors’ funds are safe. Despite US assurances, China startups move quickly to transfer their deposits to other banks.US President Joe Biden declares the US banking system “safe”, vowing stiffer bank regulations to better protect small businesses and prevent similar bank failures in the future.Tuesday, March 14SVB’s new boss appeals to depositors to return and restore their faith in the bank, to help it get back on its feet.Fed chairman Jerome Powell asked to recuse himself from a review convened for recent bank failures. His prior support for easing regulations for large regional banks is suspected to have contributed to SVB’s collapse.Wednesday, March 15Vultures swoop in – with global bank stock sell-off, regional bank leaders boost personal stakes in their respective companies. Banks seize the chance to woo customers. Among them, Bank of America takes in more than US$15 billion in new deposits over the weekend.","news_type":1},"isVote":1,"tweetType":1,"viewCount":31,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0}],"lives":[]}