Silicon Valley Bank collapse: Stocks plummet and investors make withdrawal pleas as tech firm hit by biggest US bank failure since 2008

Tech stocks tumbled as shares plummeted and thousands of employees were left anxious about their jobs after Silicon Valley Bank collapsed in the largest American bank failure since the 2008 financial crisis.<br><br>SVB Financial Group went into receivership following a frenzied 48 hours that saw the bank's shares plummet by more than 60%, with bosses desperately seeking a buyer.<br><br>The bank was a major financial backer for high-growth tech companies in the world’s most famous tech hub, holding the funds of thousands of start-ups and scale-ups.<br><br>The dramatic collapse was sparked by the sale of $21 billion of its holdings at a $1.8 billion loss, which sparked a panic which saw investors pull out billions of dollars worth of cash, crippling the bank’s finances.<br><br>Bosses were locked in last-ditch talks over the weekend to try and find a buyer, but were unable to secure a rescue deal.<br><br>Silicon Valley Bank, which was the 16th largest bank in the US, was closed by the California Department of Financial Protection and Innovation, which named the Federal Deposit Insurance Corporation as receiver.<br><br>The FDIC said it was seeking to sell off the bank’s assets and that it would pay out what was insured up to $250,000, the legal limit on deposit insurance.<br><br>But many of its customers have millions of dollars locked in the bank, with many fearing they have lost their entire business in an instant.<br><br>Joseph Silvanovich, who had $500,000 deposited at Silicon Valley Bank, said: 'The banking system is completely, utterly broken. There’s no confidence left.'<br><br>Silicon Valley Bank’s collapse is the biggest US banking failure since Washington Mutual failed in 2008.<br><br>US regulators rushed to reassure investors that the financial system was sound but shares in other US banks plummeted and the Dow Jones slid by more than 700 points.<br><br>Silicon Valley Bank had $209 billion in total assets at the end of 2022, with $175.4 billion in deposits.