1. Type-1.

SVB, founded in 1983, was the sixteenth largest US bank before insolvency. They specialized in
financing and banking venture-backed enterprises, notably technology companies. Tech
executives and venture capitalists did business there. Silicon Valley Bank had $209 billion in
assets by 2022, according to the FDIC. (FDIC).
SVB funded over half of U.S. technology and healthcare businesses. SVB supported high-risk
businesses, making it a tech industry favorite.
Technology companies profited from the 2020 pandemic because customers spent a lot on digital
services and equipment. Internet companies used SVB's services to keep funds for payroll after a
significant cash surge. Banks invest most deposits.

The bank failed due to a lack of diversification and a bank run, in which many customers
withdrew their savings at once out of concern about its stability. Startups dominated SVB's
deposits. According to Jay Jung, founder and managing partner of Embark Advisors, investors
placed huge amounts due to the epidemic's rising desire for technology.
Silicon Valley Bank invested a lot of money in long-term U.S. treasuries and agency mortgage-
backed securities. Bond and Treasury values fall when interest rates rise. SVB's bond portfolio
fell in 2022 when the Federal Reserve hiked interest rates to fight inflation, but if it had stayed
on until maturity, it would have recovered its capital. Silicon Valley Bank made short-term loans.
In 2021, they switched to longer-term securities like Treasuries to generate income and stopped
covering liabilities with short-term investments for quick liquidations. Due to the high cost of
selling their assets, they were insolvent for months. As venture funding dried up, many IT
industry bank customers withdrew funds. SVB could not liquidate these deposits since they were
secured by long-term assets. Customers and investors were alarmed by their bond sales at a loss.
The bank failed 48 hours after reporting the asset sale.
Many worried that SVB lacked capital when it announced on March 6 that it was raising $1.75
billion. Twitter and WhatsApp users were alarmed by the lack of funds. Waves of consumers
withdrew cash. SVB's stock plunged 60% on March 7 after announcing a capital raising. Many
blame Twitter for the bank run. California authorities closed and placed SVB under FDIC
supervision on March 8. SVB consumers have higher deposits than personal banking. When
withdrawals snowballed during the bank rush, funds depleted quickly. Most consumers had
deposits over $250,000 FDIC. Many firms used their SVB primary account for expenses instead
of a money market. The majority of their operating cash was in their SVB account, and they
needed access to their deposits for payroll and other expenses.
SVB stockholders and investors lost a lot because their assets were not FDIC-insured like SVB's
clients'.
Another concern is payroll deposit shortages. SVB invests heavily in Etsy, Roblox, Rocket Labs,
and Roku. FDIC insures most banks. Accounts were covered up to $250,000. Business accounts
spend millions every month, thus this is insignificant.
Silicon Valley Bank, Signature Bank, and Credit Suisse were also insolvent. In a government-
negotiated deal, UBS acquired Credit Suisse for 3 billion Swiss francs (approximately $3.25
billion) on March 19. On March 19, the FDIC announced New York Community Bank's $2.7
billion purchase of Signature Bank. Signature Bank locations will be renamed Flagstar Bank, a
New York Community Bank subsidiary. On March 14, Moody's Investor Service reviewed
Comerica Bank, First Republic Bank, Entrust Financial, UMB Financial, Western Alliance
Bancorporation, and Zions Corp. for credit rating downgrades. These ratings reflect large
unrealized losses and uninsured deposits. They also affected SVB.

2. Type-02
SVB, formed in 1983, was the sixteenth largest bank in the United States until its demise. They
specialize in financing and banking venture-backed businesses, primarily technology firms.
There, tech executives and venture capitalists conducted business. The FDIC reports that Silicon
Valley Bank has $209 billion in assets by 2022. (FDIC).
Over fifty percent of U.S. technology and healthcare startups were funded by SVB. SVB
sponsored high-risk firms, making it a favorite in the technology sector.
The 2020 pandemic resulted in substantial consumer spending on digital services and equipment,
which benefited technological firms. After a massive surge of cash, online businesses utilized
SVB's services to hold payroll monies. Banks invest most deposits.
The bank failed due to a lack of diversification and a bank run, in which a large number of
customers withdrew their savings simultaneously out of fear for its stability. Initial public
offerings dominated SVB's deposits. According to Jay Jung, founder and managing partner of
Embark Advisors, investors placed significant sums due to the rising need for technology caused
by the epidemic.
Silicon Valley Bank invested heavily in agency mortgage-backed securities and long-term U.S.
bonds. When interest rates rise, the value of bonds and Treasuries falls. As the Federal Reserve
raised interest rates to combat inflation in 2022, SVB's bond portfolio dropped, but had it held on
until maturity, it would have recovered its capital. Silicon Valley Bank provided loans with short
terms. In 2021, they resorted to longer-term securities, such as Treasuries, to generate income
and ceased financing liabilities using short-term investments for quick liquidations. They were
insolvent for months due to the exorbitant cost of liquidating their assets. As venture capital
funding dried up, many bank clients in the IT industry withdrew funds. Due to the fact that these
deposits were secured by long-term assets, SVB was unable to liquidate them. Consumers and
investors were alarmed by their loss-making bond offerings. The bank folded 48 hours after the
asset sale was reported.
When SVB disclosed on March 6 that it was seeking $1.75 billion, many were concerned that the
bank lacked sufficient capital. Users of Twitter and WhatsApp were troubled by the lack of
financing. Consumers withdrew cash in waves. The stock of SVB fell 60% on March 7 following
the announcement of a capital raising. Many attribute the bank run to Twitter. On March 8,
California officials closed SVB and placed it under the supervision of the FDIC. Personal
banking customers have lower deposits than SVB customers. As a result of the avalanche of
withdrawals during the bank rush, the available funds dropped rapidly. The majority of consumer
deposits exceeded $250,000 FDIC. Many businesses used their SVB primary account for
expenses rather than a money market account. The majority of their operating funds were held in
their SVB account, and they required access to their deposits for payroll and other expenses.
SVB owners and investors suffered significant losses since their assets were not FDIC-insured
like those of SVB's customers.
Payroll deposit shortages are another concern. SVB makes significant investments in Etsy,
Roblox, Rocket Labs, and Roku. The FDIC insures the majority of banks. There was protection
for accounts up to $250,000 Monthly, business accounts spend millions, thus this is pointless.
Also, insolvent were Silicon Valley Bank, Signature Bank, and Credit Suisse. On March 19, UBS
acquired Credit Suisse for 3 billion Swiss francs (about $3.25 billion) via a government-
negotiated arrangement. The FDIC announced New York Community Bank's $2.7 billion
acquisition of Signature Bank on March 19. Signature Bank locations will be renamed Flagstar
Bank, a subsidiary of New York Community Bank. Moody's Investor Service downgraded the
credit ratings of Comerica Bank, First Republic Bank, Entrust Financial, UMB Financial,
Western Alliance Bancorporation, and Zions Corporation on March 14. This rating reflects
significant unrealized losses and uninsured deposits. These affected SVB as well.