It was only natural that a large, highly capitalized bank, which is one the most preferred depositories for capital for venture capital-funded technology firms in Silicon Valley, San Francisco Bay and elsewhere, would make major waves in the wider financial markets economy should it fail.
It has collapsed, and the consequences are immense.
Silicon Valley Bank, which was founded 39 years ago at the height of the global technology revolution, has gone under, with losses estimated at over $15 billion, and now the fingers of blame are being pointed as the bank's collapse serves to echo the banking crisis of 2008/2009 after which many observers and government regulators cited lack of prudent governance, carefree risk management and lending to those who cannot afford repayments to have been factors.
It was so serious that both the US and European governments created a new set of regulations to stop financial institutions from engaging with gung-ho corporate policies and to protect the public and business community against losses should banks fail.
We are now in 2023, and witness the second-largest bank collapse in American history…