SVB

The bank's failure was triggered by a bank run after a $1.8 billion loss on mortgage-backed securities sales was disclosed on March 8, 2023 (per the Federal Reserve's April 2023 review). The run intensified over 48 hours, with depositors withdrawing approximately $42 billion, the largest bank failure since 2008.

SVB operated as a commercial bank with a venture debt specialty. It was regulated as a state-chartered bank with a Federal Reserve-supervised holding company. Its core business was lending to VC-backed companies, not investing in them, though it did have venture capital arms including SVB Capital.

The FDIC took receivership on March 10, 2023. Most of SVB's assets and deposits were sold to First Citizens BancShares on March 27, 2023, for approximately $16.5 billion (per the FDIC). The securities portfolio and other assets were retained by the FDIC.

The Federal Reserve's April 2023 review found that SVB had inadequate risk management for interest rate risk, as it held long-duration securities funded by uninsured deposits from venture-backed companies. The bank had not stress-tested a scenario of rapid interest rate hikes combined with deposit outflows.

No. SVB had international operations in the UK, Germany, and Israel. Its UK subsidiary, SVB UK, was acquired by HSBC on March 13, 2023 for £1 (per HSBC press release). The bank's lending concentrated on US venture hubs, but its deposit base included global VC firms and their portfolio companies.

SVB Private Bank, originally Boston Private Financial Holdings acquired in 2021 for $1 billion, provided banking and wealth management to wealthy individuals tied to the innovation economy. It was sold as part of the FDIC receivership to First Citizens and continues operating as First Citizens Private Bank.