March 14 (Reuters) - The swift downfall of SVB Financial Group (SIVB.O), the biggest collapse of a bank since Washington Mutual in 2008, has sparked fears of contagion in the financial sector and affected every asset class from stocks to forex.
Bank stocks globally saw hundreds of billions of dollars wiped away from their market valuation in the aftermath of the collapse, which also shook the startup community the Santa Clara, California-based bank was mainly lending to.
Below is a timeline of key events:
Date | Development |
March 8, 2023 | SVB says it intends to raise $2.25 billion in common equity and preferred convertible stock after it sold a portfolio of US Treasuries and mortgage-backed securities at a $1.8 billion loss |
March 9, 2023 | SVB clients pull their money from the bank on the advice of venture capital firms such as Peter Thiel's Founders Fund, sources tell Reuters, leading to $42 billion of deposit withdrawals on that day |
March 10, 2023 | A California regulator shuts Silicon Valley Bank and appoints the Federal Deposit Insurance Corporation (FDIC) as receiver to take control of its parent company, according to the agency's statement |
March 11, 2023 | Employees of Silicon Valley Bank offered 45 days of employment at 1.5 times their salary by the regulator FDIC, according to an email to staff seen by Reuters |
March 12, 2023 | "Depositors will have access to all of their money starting Monday, March 13," the U.S. Treasury, Federal Reserve and FDIC say in a statement, adding that no losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer read more |
March 13, 2023 | The defunct holding company says it is planning to explore strategic alternatives for its businesses and names William Kosturos as its chief restructuring officer. |
March 14, 2023 | SVB says that Goldman Sachs acquired the bond portfolio on which it booked a $1.8 billion loss, a transaction that set its failure in motion. |