Silicon Valley Bank (SVB) collapsed and was put into receivership by the FDIC late this week. SVB was the 16th largest bank in the United States. This means that the collapse is not only horrible for SVB but is perhaps more importantly a huge problem for its customers.
For instance, internet content provider Roku was impacted according the ABC News:
…’Internet TV provider Roku was among casualties of the bank collapse. It said in a regulatory filing Friday that about 26% of its cash — $487 million — was deposited at Silicon Valley Bank. …Roku said its deposits with SVB were largely uninsured and it didn’t know “to what extent” it would be able to recover them.’…(ABC News)
Of a potentially much larger concern is the contagion in banking and its connection to cryptocurrencies. Earlier in the week Silvergate bank collapsed. Silvergate was a darling of the crypto community. Starting in earnest with the collapse of Sam Bankman-Frieds’ cataclysmic destruction of FTX in late 2022, the cratering of the crypto market and confidence in it has proved to be valid.