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After five years of being rated as one of America’s best banks, Silicon Valley Bank (SVB) has fallen sharply from its dominance.
SVB and its parent company, SVB Financial Group, are recognized financial institutions serving a wide range of companies in a variety of industries, from technology and venture capital firms to private equity clients.
SVB included Forbes annual list Just weeks before the March 10 closure under the control of the Federal Deposit Insurance Corporation (FDIC), the parent company celebrated the point on Twitter.
— Dr. Eli David (@DrEliDavid) March 12, 2023
SVB Financial has deleted its Twitter account after being ordered to close it by the California Department of Financial Protection and Innovation.
The impact had a direct and tumultuous impact on the wider crypto ecosystem, as stablecoin issuer Circle had a reserve of $3.3 billion USD Coin (USDC) in its banks. . As a result, USDC he was unpegged from the $1 mark, but then returned to roughly par with fiat-based pegs.
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Forbes data highlights SVB Financial’s stock performance over the past five years. $SIVB hovered between highs of $325 and $136 from 2018 to the end of 2020. It then reached a high of $759 at the end of 2021 before falling slowly and steadily along with the broader cryptocurrency and traditional markets.
Since SVB closed in March 2023, $SIVB’s share price has fallen to $100.
Tether co-founder William Quigley shared his insights with Cointelegraph after the SVB closed over the weekend. I have.
According to Quigley, the U.S. Treasury Department was aware, based on a federal report, that the SVB would not be able to repay all depositors after December 2022.
“The Treasury Department continued to allow SVB to operate and take in more depositor cash, even as SVB’s fixed asset base continues to depreciate due to rising interest rates.”
Quigley also said that SVB’s debt was rated AA by Moody’s, a federally regulated statistical rating agency, but the bank was cleared three weeks ago by KPMG, a federally overseen and state-licensed audit firm. It also states that it has received an audit opinion.