Investment manager cites 'emerging risk' after SVB failure
STORY: California banking regulators on Friday moved quickly to close startup-focused lender SVB, a sudden collapse that prompted the global banking sector to shed billions in market value.
SVB does business as Silicon Valley Bank. Its customers were met with locked doors on Friday.
"We have been here before in the banking industry," said Sharma. "And it keeps happening again and again. The banking industry is based a lot on confidence and credibility. And we've seen bank runs before. The moment you start having this flight of deposits, you have a liquidity crisis that then quickly becomes a solvency crisis."
Technology workers whose paychecks relied on the bank were worried about getting paid on Friday. An SVB branch in San Francisco showed a Scotch-taped note telling clients to call a toll-free telephone number.
The main office and all branches of Silicon Valley Bank will reopen on March 13 and all insured depositors will have full access to their insured deposits no later than Monday morning, according to the FDIC statement.