Silicon Valley Bank seized by FDIC as depositors pull cash
New York, Mar 10: The Federal Deposit Insurance Corporation seized the assets of Silicon Valley Bank on Friday, marking the largest bank failure since Washington Mutual during the height of the 2008 financial crisis.
The bank failed after depositors mostly technology workers and venture capital-backed companies began withdrawing their money creating a run on the bank.
Silicon Valley was heavily exposed to tech industry and there is little chance of contagion in the banking sector as there was in the months leading up to the Great Recession more than a decade ago. Major banks have sufficient capital to avoid a similar situation.
The FDIC ordered the closure of Silicon Valley Bank and immediately took position of all deposits at the bank Friday. The bank had USD 209 billion in assets and USD 175.4 billion in deposits as the time of failure, the FDIC said in a statement. It was unclear how much of deposits was above the USD 250,000 insurance limit at the moment.
Notably, the FDIC did not announce a buyer of Silicon Valley's assets, which is typically when there's an orderly wind down of a bank. The FDIC also seized the bank's assets in the middle of the business day, a sign of how dire the situation had become.
The financial health of Silicon Valley Bank was increasingly in question this week after the bank announced plans to raise up to USD1.75 billion in order to strengthen its capital position amid concerns about higher interest rates and the economy.
Shares of SVB Financial Group, the parent company of Silicon Valley Bank, had plummeted nearly 70 per cent before trading was halted before the opening bell on the Nasdaq.
CNBC reported that attempts to raise capital failed and the bank was now looking to sell itself.
Silicon Valley bank was not a small bank, it's the 16th largest bank in the country, holding USD 210 billion in assets. It acts as a major financial conduit for venture capital-backed companies, which have been hit hard in the past 18 months as the Federal Reserve has raised interest rates and made riskier tech assets less attractive to investors.
Venture capital-backed companies were being reportedly advised to pull at least two months' worth of "burn" cash out of Silicon Valley Bank to cover their expenses. Typically VC-backed companies are not profitable and how quickly they use the cash they need to run their businesses their so-called "burn rate" is a typically important metric for investors.
Diversified banks like Bank of America and JPMorgan pulled out of an early slump due to data released Friday by the Labor Department, but regional banks, particularly those with heavy exposure to the tech industry, were in decline.
Yet it has been a bruising week. Shares of major banks are down this week between 7 per cent and 12 per cent.
Let the Truth be known. If you read VB and like VB, please be a VB Supporter and Help us deliver the Truth to one and all.
Increasing wild animals amid decreasing forest cover contributes to human-animal conflicts: Minister
Bengaluru (PTI): Karnataka Forest Minister Eshwar Khandre told the Legislative Assembly on Thursday that the increase in the population of wild animals like tigers and elephants, amid a decrease in forest cover in the state, is contributing to human-animal conflicts.
The minister was responding to questions raised by MLAs, including Leader of the Opposition R Ashoka in the Assembly.
"The number of animals has increased. In 1972, Bandipur had 12 tigers. Now, there are 175 tigers. Regarding the carrying capacity (at Bandipur), we have formed a team of experts and will be getting a report from them," Khandre said.
He said, "Forest cover is not increasing proportionately with the rise in animal population. In fact, forests have decreased. We are trying to save forests."
Ashoka sought to know from the minister if the government's recent decision to halt safaris had decreased human-animal conflict.
In November 2025, the government stopped safaris at Bandipur and Nagarhole tiger reserves following a spate of tiger attacks that resulted in human deaths. However, in February, the government decided to lift the safari ban.
Explaining the decision to stop safari, Khandre said, "Safari was not stopped all of a sudden. In November and December, human-animal conflict increased. In Bandipur and the surrounding areas, three lives were lost in a span of fifteen days due to tiger attack, while one person became permanently disabled".
"When I visited Chamarajanagara district, several people and organisations, including farmers, had submitted memoranda, as two lives were already lost by then."
"They had alleged that the safari vehicles were operating even during the night and they were not being regulated, more than the permitted number of people were coming for safari, and it should be halted, or else it may lead to the loss of more lives," he said, adding that based on the memorandum, he had asked officials to examine things.
As there was one more tiger attack in a week's time, the minister further said, following this, he immediately ordered to stop the safari. "Yes, lots of tourists come for the safaris..... Livelihoods were also lost. There was a loss of Rs 6-8 crore. But we wanted to save lives," he said.
Noting that Bandipur has a periphery of 314 km, of which 100 km is a maximum conflict zone, Khandre said. "In that region, we have 25 anti-poaching camps and round-the-clock patrols, with all required facilities. We have set up an integrated command centre. Drone cameras and other facilities have been provided there," he said.
He said the decision to reopen the Bandipur safari was made after regulating things, based on the recommendations in the interim report from a committee consisting of a central government representative.
The government is conducting an outreach programme in 70 villages around the periphery of Bandipur forest, where the government will use 35 per cent of the income from safaris on education and livelihood improvement, Khandre said.
Responding to another question by Malavalli Congress MLA P M Narendraswamy, the minister said, elephant attacks are also on the rise day by day.
"There are several reasons for this. The elephant population has increased. The elephant corridor has been fragmented due to various developmental works like expressways, among others," he said.
Stating that the government has taken various measures to stop this, Khandre said, "The government is erecting 116 km of railway barricades at a cost of Rs 201 crore. They are at various stages....we are also taking up other measures like tentacle fencing. We also have an elephant task force and a leopard task force (to tackle leopard attacks), command centres, and use of modern technologies to monitor the movement of wild animals."
The minister accepted the request of Sullya BJP MLA Bhagirathi Murulya to allow the trekking at Kumara Parvatha, considered one of the toughest trails in the Western Ghats, from 5.30 am instead of the current 6 am.
"The Subramanya-Kumara Parvatha is 12 km, up and down it is a 24-km, 2-day trek. Earlier, the trek started at 6 am, and people had to camp at one location that had no basic facilities, coupled with wildlife movement," Khandre said.
Considering all these factors, the time was changed by senior officials in June 2024, he said. "Now, the 14-km Beedahalli-Kumara Parvatha trek takes 7 hours. The 19-km Beedahalli-Kumara Parvatha-Subramaya needs 10-12 hours.
The Subramanya-Shesha Parvatha-Subramanya is 20 km. Those who start at 6 am have to return before 6 pm.....The starting time will be changed to 5.30 am," he said.
Noting that beyond the carrying capacity, about 2,000-3,000 people used to gather there for trekking sometimes, which could cause disaster, the minister said.
"It has been decided to regulate it by allowing only 150 people per day. The trek happens for six months; it cannot be done during the monsoon and when there are chances of wildfire during summer."
