Silicon Valley Financial institution, which does enterprise with roughly half of the nation’s tech and biotech firms, failed on Friday. Now, as federal regulators step in to scrub up SVB’s mess, biotech startups are left questioning: What occurs to their cash, and who’s going to finance the trade?
On Friday morning, the Federal Deposit Insurance coverage Company took management of SVB and is presiding over a sale of the agency’s property to cowl purchasers’ deposits. Its mum or dad firm, SVB Monetary, had misplaced greater than 66% of its market worth over two days after dumping billions of {dollars} of bonds to shore up its steadiness sheet. SVB has halted buying and selling of its personal inventory amid reports that it’s attempting to promote itself to a bigger monetary establishment.
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