论硅谷银行的倒掉
论硅谷银行的倒掉
Collapse of Silicon Valley Bank
This article may be affected by the following current event: Collapse of Silicon Valley Bank. Information in this article may change rapidly as the event progresses. Initial news reports may be unreliable. The last updates to this article may not reflect the most current information. Please feel free to improve this article (but note that updates without valid and reliable references will be removed) or discuss changes on the talk page. (March 2023) (Learn how and when to remove this template message)SVB Financial Group
Headquarters in Santa ClaraTypePublicTraded asNasdaq: SIVBIndustryFinancial servicesFounded1983; 40 years agoFounders
Bill Biggerstaff
Robert Medearis
DefunctMarch 10, 2023; 1 day agoHeadquartersSanta Clara, California, United StatesKey people
Greg Becker (CEO)
Roger F. Dunbar (Chairman)
Michael R. Descheneaux (President)
Revenue
US$7.40 billion (2022)Net income
US$1.51 billion (2022)Total assets
US$211.8 billion (2022)Total equity
US$16.0 billion (2022)Number of employees8,553 (December 2022)ParentFederal Deposit Insurance Corporation SubsidiariesSVB SecuritiesCapital ratioTier 1 15.26% (2022)Websitesvb.comFootnotes / references
[1]
Silicon Valley Bank in Tempe, Arizona
Silicon Valley Bank (SVB) was a commercial bank headquartered in Santa Clara, California. SVB was on the list of largest banks in the United States and was the biggest bank in Silicon Valley based on local deposits, with a 25.9% market share as of June 30, 2016.[2] It was a subsidiary of SVB Financial Group, a bank holding company[3] and a member of the S&P 500 index.[4] On March 10, 2023, after a bank run on its deposits, it suffered from bank failure and was taken into receivership by the Federal Deposit Insurance Corporation in the second largest bank failure in American financial history.[5]
The company focused on lending to technology companies, providing multiple services to venture capital, revenue-based financing and private equity firms that invest in technology and biotechnology, and also on private banking services for high-net-worth individuals, in its home market in Silicon Valley.[1][6][7] In addition to taking deposits and making loans, the bank operated venture capital and private equity divisions that sometimes invested in the firm's commercial banking clients.[8]
The bank operated from 29 offices in the United States and from offices in India, the United Kingdom, Israel, Canada, China, Germany, Hong Kong, Ireland, Denmark, and Sweden.[1][9][10]
History
Initial years (1983–1994)
Silicon Valley Bank (SVB) was founded in 1983 by Bill Biggerstaff and Robert Medearis over a poker game.[11] Its first office opened in 1983 on North First Street in San Jose. The Palo Alto office opened in 1985.[12] The bank’s main strategy was collecting deposits from businesses financed through venture capital. It then expanded into banking and financing venture capitalists themselves, and added services to allow the bank to keep clients as they matured from their startup phase.[13] In 1986, SVB merged with National InterCity Bancorp and opened an office in Santa Clara. In 1988, the bank completed its IPO, raising $6 million. In the same year, they opened another office in San Jose. In 1990, the bank opened its first office on the East Coast, near Boston, to serve the Route 128 tech corridor. The following year, the bank went international with the launch of the companies Pacific Rim and Trade Finance.[12]
By the mid-1990s, the bank had provided early venture capital to Cisco Systems and Bay Networks.[14] In 1992, the bank was hit by the real estate burst (50% of the bank's assets) and recorded a $2.2 million yearly loss.[14] In 1993, the bank's founding CEO, Roger V. Smith, was replaced by John C. Dean; Smith became Vice Chairman of the bank.[15] Smith left in 1994 to launch the Smith Venture Group.[16] In 1994, the bank launched its Premium Wine Practice activities.[12]
Expansion (1995–2022)
In 1995, the bank moved its headquarters from San Jose to Santa Clara.[14] In 1997, SVB opened a branch in Atlanta.[17] In 1999, the company was reincorporated in Delaware.[12] From March 1999 to March 2000, SVB's stock value soared from $20 to $70.[17]
In 2000, SVB opened a branch in Florida.[17] In 2001, SVB Securities acquired the Palo Alto investment banking firm Alliant Partners for $100 million.[18] Following the crash of the dot-com bubble, the bank's stock dropped 50%.[19] In 2002, the bank began expanding its private banking business, which up to that point had been done primarily as a favor to wealthy venture capitalists and entrepreneurs.[20]
In 2004, the bank opened international subsidiaries in Bangalore, India, and London.[21][22] In 2005 it opened offices in Beijing and Israel. In 2006, the bank began operations in the UK and opened its first branch there in 2012.[8] In 2006, the bank also ceased its investment banking activities, launched after the 2001 dotcom crash.[19]
In December 2008, SVB Financial received a $235 million investment from the U.S. Treasury through the Troubled Asset Relief Program.[23] The U.S. Treasury received $10 million in dividends from Silicon Valley Bank and, in December 2009, the bank repurchased the outstanding stock and warrants held by the government, funding this through a stock sale of $300 million.[24]
In April 2011, Ken Wilcox, who had been CEO since 2000, left the CEO position, while remaining Chairman of the Board; he was replaced by Greg Becker as CEO.[25] By 2011 the bank had helped fund more than 30,000 start-ups.[26]
In November 2012, the bank announced a 50-50 joint venture with Shanghai Pudong Development Bank (SPDB) to provide capital to start-up technology entrepreneurs.[27] In July 2015, the joint venture was approved by the China Bank Regulatory Commission (CBRC) to operate in renminbi (RMB), the official currency of the People’s Republic of China. This license allows the joint venture to provide banking products and services to its clients in local Chinese currency.[28] According to the bank itself, in 2015 SVB was providing banking and financial services to 65% of all startups.[19]
In March 2017, Michael R. Descheneaux was named president of the company.[29]
In 2019, Leerink Partners LLC, now SVB Securities, was acquired by SVB Financial Group, the parent company of Silicon Valley Bank.[30]
In January 2021, the bank announced its plan to acquire Boston Private Financial Holdings (NASDAQ: BPFH), the parent company of Boston Private Bank & Trust Company, which expanded Silicon Valley Bank's wealth management solutions.[31]
Collapse
Main article: Collapse of Silicon Valley Bank
On March 9, 2023, shares of SVB Financial plunged more than 62% after the company proposed a share sale to shore up its balance sheet which had suffered a $1.8 billion loss on the sale of Treasury securities, due to rising interest rates.[32][33] Following the news, several venture capitalist firms including Founders Fund, Coatue Management, and Union Square Ventures advised their portfolio companies to withdraw their money out of SVB, contributing to a bank run.[34] SVB shares fell another 66% in pre-market trading on March 10, before trading was halted.[35][36]
Later on March 10, the bank was shut down by the California Department of Financial Protection and Innovation, citing inadequate liquidity and insolvency.[11] The state regulator appointed the Federal Deposit Insurance Corporation as receiver. The FDIC transferred insured deposits to a new institution, the Deposit Insurance National Bank of Santa Clara.[37][38][39][40] The failure of SVB was the largest of any bank since the 2008 financial crisis and the second-largest in US history.[41]
Collapse of Silicon Valley Bank
This article documents a recent bank failure. Information may change rapidly as the event progresses, and initial news reports may be unreliable. The latest updates to this article may not reflect the most current information. Feel free to improve this article or discuss changes on the talk page, but please note that updates without valid and reliable references will be removed. (March 2023) (Learn how and when to remove this template message)
Silicon Valley Bank headquarters in Santa Clara, California
On March 10, 2023, Silicon Valley Bank collapsed, causing the largest bank failure since the 2008 financial crisis and the second-largest in U.S. history.[1] 86% of the bank's US$175 billion in assets were uninsured.[2]
Background
Silicon Valley Bank
Silicon Valley Bank's logo
Silicon Valley Bank is a commercial bank founded in 1983 and headquartered in Santa Clara, California. Until its collapse, Silicon Valley Bank was the 16th largest bank in the United States.[3] The company's portfolio includes Airbnb, Cisco, Fitbit, Pinterest, and Block, Inc..[4]
Rising interest rates[edit]
Further information: 2021–2023 inflation surge
As Silicon Valley startups began experiencing success in the late 2010s, Silicon Valley Bank began taking out bonds, and kept a small amount of the deposits on hand. In response to a surge in inflation as a result of the COVID-19 pandemic, the Federal Reserve began increasing interest rates, causing startup funding to decrease.[5] Startups began to withdraw funds held in the bank, leading to the bank being short on capital. To make up for it, the bank sold the bonds at a US$1.8 billion loss.[6]
Collapse[edit]
Instability issues
On March 8, 2023, Silicon Valley Bank announced it had sold US$21 billion worth of its investments, borrowed US$15 billion, and held an emergency sale of its stock. In response, the company's stock fell as investors at some venture capital firms urged startups to leave the company.[7] Customers withdrew US$42 billion, leaving the bank nearly US$1 billion in negative cash balance.[6]
Receivership process
The Federal Deposit Insurance Corporation (FDIC) seized assets from Silicon Valley Bank
On March 10, the California Department of Financial Protection and Innovation (DFPI) announced that it had shut down Silicon Valley Bank, leaving its assets to the Federal Deposit Insurance Corporation (FDIC).[8] The FDIC plans to sell the bank's assets.[2]
Impact
The collapse of Silicon Valley Bank has caused a ripple effect across the tech sector.[9] In a Securities and Exchange Commission (SEC) filing, streaming media company Roku, Inc. revealed that around a quarter of the company's cash reserves were held by Silicon Valley Bank.[10] Many startups were unable to retrieve money, resulting in companies taking out loans to make payroll.[11]
Outside of the tech sector, concerns have been raised about the stability of Silicon Valley Bank's banking peers, including First Republic Bank and Western Alliance Bancorporation.[12] Shares of both companies fell in the wake of the announcement.[13] In addition, stock values of U.S. banks have lost a combined US$100 billion in two days, and European bank stocks lost US$50 billion.[2]
