SVB’s failure shines light on dangers of high interest rates
Silicon Valley Bank had $209 bln in assets. Its tech-focused clients were hit by a cash squeeze and pulled money from their accounts. To cover the withdrawals, SVB sold bonds in its portfolio at a $1.8 bln loss, caused by the rising interest rates. That worried clients, so they pulled even more money, until the regulator announced it was closing down SVB.

10 March 2023

Financial Times