The tech bank collapse of 2023


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March began in an inauspicious way: with the collapse of Silvergate Bank, an institution closely associated with crypto. Then just a few days later, the FDIC stepped in to close Silicon Valley Bank, a three-decade-old firm that held deposits from many startups and tech companies. Days later, the failure of Signature Bank marked the third in a week.

What does this mean for startups or the industry at large? What could this mean for the American banking system? It’s too early to say (though we have some hunches). The Verge will stay up to the minute with news, analysis, and explainers on the effects of these bank collapses and what happens next.

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    The FDIC is going to try and auction off Silicon Valley Bank again.

    That didn’t quite work out on Sunday, but the Wall Street Journal reports officials told senators they have “additional flexibility” to make a deal now that the bank’s collapse has been deemed a threat to the financial system.

    The move also gives regulators the ability to offer would-be buyers deal sweeteners such as loss-sharing agreements, according to former regulators. 

    While none of the largest U.S. banks bid on SVB during a failed auction on Sunday, at least one offer was made by another institution, but it was declined by the FDIC, officials told lawmakers on Monday.

  • President Joe Biden says Silicon Valley Bank deposits will “be there when you need them.”

    It’s the promise the president made to depositors in a speech at the White House on Monday. Throughout his brief remarks, Biden also reassured viewers that no taxpayer money would be used to bail out the bank.

    The speech followed a Sunday announcement from the government’s top banking regulators that they were setting up an emergency lending program to ensure all SVB depositors are made whole.

  • Mar 12Elizabeth Lopatto

    Another big crypto bank has vanished, with the Treasury, FDIC, and Federal Reserve citing “systemic risk” at Signature, while promising Silicon Valley Bank depositors will have access to all of their funds on Monday.

  • Mar 12Emma Roth

    The DIY marketplace is pressing pause on payouts until it can route deposits through one of its other payment partners. But some sellers feel as if they’ve been left in the dark.

  • A federal bailout isn’t in the cards for Silicon Valley Bank, but deposits are safe.

    Depositors will be paid back in full and can access their money starting Monday morning, officials said. In an interview on Face the Nation, US Treasury Secretary Janet Yellen ruled out a government-backed bailout:

    During the financial crisis, there were investors and owners of systemic large banks that were bailed out. And the reforms that have been put in place means that we’re not going to do that again. But we are concerned about depositors and are focused on trying to meet their needs.