SVB, as the Silicon Valley bank became known, had a large portion of its assets – 55% – invested in fixed-income securities, such as US government bonds.
Bank of America has raised more than $15 billion in new deposits in the past few days
Even US-based Silicon Valley Bank (SVB) and Signature Bank have collapsed with heavy spiel, resulting in other US banks receiving depositors. according to a Bloomberg Report, Bank of America (BoFA) raised more than $15 billion in new deposits in the past few days.
According to the report, the inflow offers the first glimpse of the flood of deposits that made their way into the country’s biggest banks as customers fear a looming crisis seek refuge in firms deemed too big to fail . According to BloombergMoney flowing into the second-largest US bank was described by people with direct knowledge of the matter, who asked not to be identified.
In addition to BOFA, other banks such as JPMorgan Chase & Co, Citigroup Inc and Wells Fargo & Co also received billions in new deposits. However, the figures of new deposits for them are yet to be ascertained.
The collapse of Silicon Valley Bank, also known as SVB, is being called the biggest bank failure since the 2008 Washington Mutual crisis or the global financial crisis. It was the 16th largest lender in the US and the go-to bank for many startups around the world.
The bank failed after clients – many of them venture capital firms and VC-backed companies that the bank had cultivated over time – began withdrawing their deposits to make a run on the bank. SVB’s collapse prompted investors to speculate that the Fed would now hesitate to hike interest rates this month by a super-size of 50 basis points.
SVB’s regulatory filing last week showed it had a negative cash balance of $958 million. SVB shares fell 41 percent, the biggest drop since 1998.
SVB, as the Silicon Valley bank became known, had a large portion of its assets – 55 percent – invested in fixed-income securities, such as US government bonds.
read all latest business news Here
