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Silicon Valley Bank's Paradox: Forbes' Best Banks Ranking and Internal Collapse at the Same Time

Silicon Valley Bank's Paradox: Forbes' Best Banks Ranking and Internal Collapse at the Same Time

NDTV
Sunday, March 12, 2023 11:55:28 AM UTC

Silicon Valley Bank's collapse was the largest bank failure since Washington Mutual in 2008 and the second-largest in U.S. history.

Silicon Valley Bank (SVB) recently celebrated making Forbes magazine's annual ranking of the best banks in America. In a tweet on Monday, the bank expressed its pride in being on Forbes' list for the fifth consecutive year, and for being named to the publication's inaugural Financial All-Stars list. Proud to be on @Forbes' annual ranking of America's Best Banks for the 5th straight year and to have also been named to the publication's inaugural Financial All-Stars list.???? https://t.co/rEmfOSTT4fpic.twitter.com/NFWlPJUbh5

However, just five days later, the bank's tweet would take on a bitter irony when regulators took control of the bank due to its inability to meet withdrawal demands from depositors.

Silicon Valley Bank's collapse was the largest bank failure since Washington Mutual in 2008 and the second-largest in U.S. history. The bank's inability to meet withdrawal demands caused a run on the bank, which triggered the California Department of Financial Protection and Innovation (DFPI) to take over the bank's operations after it went insolvent. The bank's assets have since been turned over to the Federal Deposit Insurance Corporation (FDIC), which will begin returning Silicon Valley Bank customers' insured deposits on Monday.

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