Silicon Valley Bank calls NYPD on customers trying to withdraw cash following institution's collapse

Click here to read the full article.

On Friday, the New York Police Department were called by a branch of the Silicon Valley Bank (SVB) as nearly a dozen investors showed up at the bank to withdraw money as federal regulators seized the institution following a run on deposits at the bank. 

According to the Daily Mail, SVB called the cops on “about a dozen” financiers, including Dor Levi, a former Lyft executive, who arrived at the Park Avenue branch location, only to be blocked from entering and then having two police units arrive to secure the SVB building.

SVB, a significant banking institution for venture-backed companies, was seized by the Federal Deposit Insurance Corporation (FDIC) Friday after a run on the bank.

A “run” on a bank occurs when people who have deposited money with the bank begin withdrawing their cash all at the same time. It usually follows fears that the bank will collapse or would be otherwise unable to cash out their deposits in full and in a timely fashion.

The run occurred after following an announcement on Wednesday, that SVB was looking to raise more than $2 billion in capital because of a $1.8 billion loss on asset sales.

Continue reading here.

Scroll down for comments and share your thoughts!


What do you think?

Leave a Reply

Your email address will not be published. Required fields are marked *

GIPHY App Key not set. Please check settings

Second-Largest Bank Failure in History Underway, US Authorities Seize Collapsing Institution

Girl Scouts Get a Nasty Taste of Biden’s America as Their Annual Cookie Sale Runs Into Big Problems