Last week America had it’s second largest bank collapse ever, here is how that actually happened in seven minutes.
Silicon Valley Bank the 16th biggest bank in America has been shut down by regulators and its operations have been seized by the Federal Deposit Insurance Corporation just three days after Silvergate bank another Californian Bank announced it would by winding downs it’s operations and liquidating.
SVB was called the investors investor as they had a venture capital and credit arm that would directly invest into funds such as sequoia capital, Ribbit Capital, Spark Capital and Greylock, basically the who’s who of institutional investors in Silicon Valley.
Most new businesses fail so traditional banks aren’t going to lend to any company that can’t show consistent profits or put up adequate security. Just like Silvergate saw a gap in the market to serve risky crypto traders Silicon Valley Bank saw a gap to serve new start-ups.
Edited By: Andrew Gonzales
Patrick Boyle’s video at 1:50 https://www.youtube.com/watch?v=kxcwn7xoXhU&t=163s
Music Courtesy of: Epidemic Sound
Select Footage Courtesy of: Getty Images
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