The New Great Recession is Here
The 2nd Largest Banking Collapse JUST Happened… Game Over for Silicon Valley
Tyler Durden with Zerohedge reports:
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Update (1135ET): Game over for Silicon Valley bank.
- *FDIC: SVB BANK CLOSED BY CALIFORNIA REGULATOR
- *FDIC: SVB BANK IS FIRST INSURED INSTITUTION TO FAIL THIS YEAR
- *FDIC CREATES A DEPOSIT INSURANCE NATIONAL BANK OF SANTA CLARA
- *FDIC: NAMED FEDERAL DEPOSIT INSURANCE FDIC AS RECEIVER
- *FDIC CREATES A DEPOSIT INSURANCE NATIONAL BANK OF SANTA CLARA
- *SILICON VALLEY BANK INSURED DEPOSITORS TO HAVE ACCESS MONDAY
As we noted before, while the FDIC noted that SVIB had $175BN in deposits as of Dec 31, note that some $151.5BN of these are uninsured, which means they get exactly zero although a sizable number of them likely pulled their deposits in the past few days.
And just like that SVB is no more: a historic collapse which in many ways was faster than Lehman, and which has seen SIVB stock plunge from $763 to 0 in 16 months.
