Headquartered in Santa Clara, the bank was ranked the 16th largest in the U.S. at the end of last year, with about $209 billion in assets.
The specifics of the tech – focused bank’s sudden collapse are not yet entirely clear, but the Fed’s aggressive rate hikes last year, which worsened financial conditions in the startup space where the bank was a major player, may be the key. reason.
As it scrambled to raise capital to replace rapidly disappearing deposits, the bank lost $1.8 billion on Treasuries whose values ​​were destroyed by the Fed’s rate hikes.
