Alarming developments continue in the financial system of the world's largest economy. According to the New York Times, one of the largest US banks went bankrupt - Silicon Valley Bank ("Bank of Silicon Valley").
The publication notes, that this was the largest bank failure in the US since the crisis 2008 of the year, when one of the oldest banks in the country Washington Mutual Bank collapsed.
Silicon Valley Bank, located in California, ranks among the top 20 US banks by assets and is a major lender to tech start-ups.
This bankruptcy has already been dubbed the second largest bankruptcy in US history.. What was going on with this, it was obvious during the last year, as by the end of the year the bank did not insure 89% deposits or almost 175 billions of dollars.
Silicon Valley Bank collapsed a couple of days after, how withdrawals were limited amid a sharp drop in his investment holdings, which caused great concern among investors.
As the New York Times writes, queues are already lining up at bank branches in order to withdraw funds from deposits, while investors dump bank shares.
To reassure investors, US Treasury Secretary Janet Yellen was quick to assure them, that the country's banking system is stable. Where is it even more stable with the total US debt in 31,6 trillion dollars… Author:Bekhan Uzhakhov Photos used:Wikipedia/Tony Webster
