Regulators closed down one of Silicon Valley’s most important banks on Friday, marking the largest bank failure since the Great Recession and the second-biggest in U.S. history.
Earlier in the day, Silicon Valley Bank suspended trading of its plummeting shares and depositors rushed to withdraw their money. As one of the main institutions where start-ups deposited their venture-backed investments, SVB’s failure sent shock waves through the industry. The turmoil comes as the tech companies retrench and shed workers, while rising interest rates spark signs of broader financial distress.
