If there is one enduring axiom in banking, it is this: Don’t run out of money.
Silicon Valley Bank, a lender to some of the biggest names in the technology world, did just that on Friday, becoming the largest bank to fail since the 2008 financial crisis. The move put nearly $175 billion in customer deposits, including money from some of the biggest names in the technology world, under the control of the Federal Deposit Insurance Corporation.
It was an extraordinary denouement less than two days after Silicon Valley Bank shocked Wall Street and its depositors with emergency moves to raise cash and stave off a collapse. The bank as of Friday morning was working with advisers on a potential sale, a person with knowledge of the negotiations said, and had halted its stock price in the wake of a precipitous fall.
This is a developing story.