Lessons from Silicon Valley Bank's Collapse: Risks Facing Banks and the Importance of Proactive Regulation.

Silicon Valley Bank, the largest bank in California by deposits, collapsed triggering hysteria in the stock market. The Federal Reserve and Federal Deposit Insurance Corporation announced a $25 billion backstop for customer deposits, and HSBC Holdings PLC HSBA acquired SVB’s U.K. asset for 1 pound. Despite these interventions, the rising price of gold suggests market participants are still wary of the future. The FDIC has placed SVB’s assets into a new bank named the Deposit Insurance National Bank of Santa Clara and guaranteed that clients will be able to access their money. Apollo Global Management is reported to be among the suitors circling SVB's loan book. The SVB debacle has put pressure on the Fed to decrease its aggressive rate hike.