Silicon Valley Fiasco

Silicon Valley Bank ("SVB") failed in March 2023, marking the largest bank failure since the 2008 Financial Crisis, which was closed on March 12, 2023, by California Department of Financial Protection and Innovation ("CDFPI"). The bank was subjected to an unanticipated bank run and capital crisis, which resulted in its collapse and takeover by federal regulators. SVB's problems began with a big loss on the sale of securities, which was exacerbated by its attempts to acquire capital in order to meet its liquidity needs. Consequently, depositors began to withdraw their funds, increasing SVB's financial difficulties. The Federal Deposit Insurance Corporation ("FDIC") was appointed as a receiver by CDFPI, which further established the Deposit Insurance National Bank of Santa Clara to take over SVB's insured deposits in the interests of the insured depositors. The FDIC, on March 13, 2023, transferred all deposits, both insured and uninsured, and substantially all assets of