It was obvious that a bank with a large capital, which was once a preferred depository of capital for venture capital-funded tech companies in Silicon Valley and San Francisco Bay, would cause major disruptions within the wider financial market economy if it failed.
It has collapsed, and the consequences are immense.
Silicon Valley Bank, which was founded 39 years ago at the height of the global technology revolution, has gone under, with losses estimated at over $15 billion, and now the fingers of blame are being pointed as the bank's collapse serves to echo the banking crisis of 2008/2009 after which many observers and government regulators cited lack of prudent governance, carefree risk management and lending to those who cannot afford repayments to have been factors.
It was so grave that the US government and European governments enacted a whole new set regulations to keep financial institutions from engaging into gung-ho corporate strategy and protect the public from losses should banks fail.
We are now in 2023, and witness the second-largest bank collapse in American history…
