TAASAN NEWS: 11 February 2023 The announcement of the closure of "Silicon Valley Bank," which is considered the most critical bankruptcy of a financial institution in America since the financial crisis of 2008, has worried investors in the financial markets.

This bank, known by its abbreviation, "SVB", was closed on Friday by the American authorities. The US Deposit Insurance Corporation has now taken control of the banking and financial services company. The bank is expected to reopen on Monday under a new name.

"Silicon Valley Bank", faced with the influx of customers wanting to withdraw their deposits, tried to increase its capital, but its efforts in this field were unsuccessful.


US Treasury Secretary Janet Yellen met with the officials of several institutions that supervise financial activities on Friday to review the situation of the banking sector after the bankruptcy of SVB. He emphasized in this meeting that he has "full confidence" in their capacity to take the necessary measures. The US Treasury Secretary also called his country's banking sector "resilient".

Although "Silicon Valley Bank" was less known to the public, it was considered one of the financiers of emerging companies in the field of technology. "SVB" was the 16th largest American bank in terms of assets.

The assets of "Silicon Valley Bank" were 209 billion dollars, and the volume of its deposits was more than 175 billion dollars.

The publication of the news of the bankruptcy of this bank has surprised many investors and caused concerns about the fate of other American banks.

The wave of panic in the financial markets also resulted in a $52 billion decrease in the value of the first four banks on the list of the largest US banks on Thursday.

This trend spread to Asian and European markets, and the value of Asian and European banks also decreased in the stock markets.

The bankruptcy of the American bank "Lehman Brothers" in 2008 led to a global financial and economic crisis, and the economic recession following the 2008 financial crisis turned into the most serious economic recession since the "Great Depression" in the 1930s.