Silicon Valley Bank failed Friday, marking the largest US bank failure since the 2008 financial crisis

Silicon Valley Bank, the 16th largest bank in the US, was shut down by regulators on Friday, marking the largest failure of a US bank since Washington Mutual in 2008.<br><br>The bank, which had become a cornerstone of the tech industry, was taken over by the Federal Deposit Insurance Corp (FDIC), which typically insures bank deposits up to $250,000. <br><br>Silicon Valley Bank’s collapse came after the firm said it was raising capital, sparking a panic among its customers who tried to pull out their money. Many of those customers had far more than the $250,000 in their accounts that is insured by the FDIC, although some firms and high-net worth individuals do take out additional insurance.<br><br>“What happened to SVB is part of a much larger phenomenon that’s been happening in the US economy,” says former FDIC chair, Sheila Bair.<br><br>But the collapse of Silicon Valley Bank has raised fears about other banks. Shares in several US banks took a hit. <br><br>SVB was a commercial bank and not a Wall Street firm, but it was heavily exposed to the tech industry, which has recently experienced a downturn.<br><br>But experts believe that for now at least the US banking system as a whole is sound.<br><br>PS: This is a repost, Mods removed the post for some reason.