Ashish Ranjan
Silicon Valley Bank Collapse: US regulators shut down Silicon Valley Bank (SVB) and seized all of its assets on Friday. The action, which makes SVB the largest retail bank to default since 2008, shook global markets and left billions of dollars belonging to corporations and investors stranded.
During this turmoil, the CEO of Razer, Min-Liang Tan, suggested that Twitter acquire SVB and transform it into a digital bank. Elon Musk, the CEO of Twitter, responded to his tweet by saying, “I’m open to the notion.”
I’m open to the idea
— Elon Musk (@elonmusk) March 11, 2023
A day after its stock price plunged 60%, regulators shut down SVB, a lender specialising in startups.It all began on Thursday, when SVB announced a stock offering and sold securities to raise much-needed cash to combat declining deposits. In response, the firm’s shares in New York fell 60 percent and trading was suspended before regulators announced the bank’s closure.
Also Read | Silicon Valley Bank Collapse,Largest Since 2008 Crisis | 10 Points
The California Department of Financial Protection and Innovation issued the closure order and designated the Federal Deposit Insurance Corporation (FDIC) as receiver.
