KQED's Forum Silicon Valley Bank Failure Roils Tech and Finance Industries
After experiencing a classic bank run with depositors withdrawing $42 billion in one day, Silicon Valley Bank was shut down by federal regulators on Friday. For many startups, SVB was the bank of choice, and its closure has roiled the tech industry. While federal regulators announced on Monday that 100% of Silicon Valley Bank’s deposits would be repaid, that has not stopped turmoil in the market. Shares in San Francisco-based First Republic Bank dropped over 60% on Monday with other bank stocks following suit. Added to this are last week’s failures of both Signature Bank, a regional bank in New York closed by regulators this weekend, and Silvergate, a banking concern favored by cryptocurrency investors. We’ll talk about how these banking issues are impacting the Bay Area and what it means for customers and the tech industry.
Guests:
Natasha Mascarenhas, senior reporter, TechCrunch
Mark Calvey, senior reporter covering banking and finance, San Francisco Business Times
Margaret O'Mara, historian of the modern United States, University of Washington - She writes and teaches about the growth of the high-tech economy, the history of American politics, and the connections between the two.
Lizette Chapman, reporter, Bloomberg
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