The Controversial Collapse of Silicon Valley Bank: A Comprehensive Analysis.

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Source: NBC News
The Controversial Collapse of Silicon Valley Bank: A Comprehensive Analysis.
Photo: NBC News
TL;DR Summary

Uncommon lending practices, including a heavy concentration of securities-backed loans, contributed to the spectacular and fast collapse of Silicon Valley Bank, raising questions about risk management by its executives and board. The bank's venture debt business may have also been problematic as tech and startup valuations fell. The bank's small cash cushion and rapidly ballooning deposits may have also contributed to its downfall. The bank is being investigated by federal prosecutors and the SEC, and investors are worried about the health of other U.S. and global banks.

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