The Federal Deposit Insurance Corporation of the US is preferred by most US entrepreneurs. To Silicon Valley Bank (SVB) announced the appointment of a receiver. The bank was closed until next Monday and activities were halted.

Naturally, this situation caused great panic among investors and entrepreneurs. Some “Get your money out of there‘while some call’If you withdraw your money, we will all go bankrupt.He said to keep calm. If you like, let’s go to the depth of the event together.

What is Silicon Valley Bank, what features does it have? Let’s explain first:

SVB is the publicly traded bank in Santa Clara, California, the heart of Silicon Valley. It’s federally insured, meaning if it doesn’t pay its depositors, can get some money from the government.

According to the website, SVB has a venture backed in the United States. works with almost half of the start-ups and its clients include 44% of venture-backed technology and healthcare companies going public, including Pinterest, Etsy, and ZipRecruiter.

Late December last year, Silicon Valley Bank, approx He had total assets of $209 billion and this is a federally insured bank in US history after the Washington Mutual collapsed during the 2008 financial crisis. became the second largest bankruptcy.

So what’s the current thing? Why did Silicon Valley Bank fail?

The SVB holds a large number of treasury bills and other government securities, representing more than half of its assets. As interest rates rose, these bonds became worthless. and the bank had to make up for the losses.

SVB shares, from the bank Sold $21 billion in assets and on Thursday after announcing it plans to sell $2.25 billion worth of stock to raise more cash. 60% written off. Explanation, encouraged start-ups to withdraw their money and sparked panic among tech investors and company founders.

However, some companies called for calm and ‘If SVB goes bankrupt, we all go bankrupt, don’t withdraw your moneythey gave their opinion. Trading in SVB shares was halted after the sharp drop in shares and regulators closed the bank. Closed until Monday.

In summary, this is the case, friends: Entrepreneurs are worried, they want to withdraw their money. Investors, on the other hand, say it is necessary to keep calm. What do you think? Please don’t forget to share your thoughts with us in the comments.