What caused the collapse of Silicon Valley Bank, and is there a danger of ‘contagion’? | In Focus podcast
In Focus by The Hindu
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The Loss of the Sale of the Bonds in the Market
Silicon Valley bank went to the market to mobilize new money but meanwhile investors realized that there was this pressure on this bank and therefore you had a situation where compared to I think a peak of something like forty four billion dollars. Many of these venture capital firms including Peter Thiel's fund and others decided to advise those startups to which they've given money to pull out their money from S.V.B. So when that solidarity broke down different depositors despite the efforts of some began to pulled out their money even when they didn't need it in order to move it to other other banks or other investments or instruments. That obviously resulted in a situation where it was clear that this was a major run
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