How did SVB collapse, and what is the fallout? : Planet Money Silicon Valley Bank was the 16th largest bank in America, the bank of choice for tech startups and big-name venture capitalists. Then, in the span of just a few days, it collapsed. Whispers that SVB might be in trouble spread like wildfire through group texts and Twitter posts. Depositors raced to empty their accounts, withdrawing $42 billion in a single day. Last Friday, after regulators declared that SVB had failed, the FDIC seized the bank.

As the dust settles on the biggest bank failure — and bank rescue — in recent memory, we're still figuring out what happened. But poor investment choices, weak regulation, and customer panic all played their parts. We'll look into the bank's collapse to understand what it can teach us about the business of banking itself.

This episode was produced by Willa Rubin, with help from Dave Blanchard. It was edited by Keith Romer, and engineered by Brian Jarboe. Fact-checking by Sierra Juarez. Our acting executive producer is Jess Jiang.

Music: "
I Don't Do Gossip," "Groovy Little Penguins" and "Vision."

Help support Planet Money and get bonus episodes by subscribing to Planet Money+ in
Apple Podcasts or at plus.npr.org/planetmoney.

Silicon Valley Bank's collapse and rescue

Silicon Valley Bank's collapse and rescue

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Noah Berger/AFP via Getty Images
US President Biden sought to reassure Americans over the country&#039;s banking system on Monday following the collapse of Silicon Valley Bank last week, the second largest bank failure in history, and New York regulators took control of Signature Bank on Sunday. (Photo by NOAH BERGER / AFP) (Photo by NOAH BERGER/AFP via Getty Images)
Noah Berger/AFP via Getty Images

Silicon Valley Bank was the 16th largest bank in America, the bank of choice for tech startups and big-name venture capitalists. Then, in the span of just a few days, it collapsed. Whispers that SVB might be in trouble spread like wildfire through group texts and Twitter posts. Depositors raced to empty their accounts, withdrawing $42 billion in a single day. Last Friday, after regulators declared that SVB had failed, the FDIC seized the bank.

As the dust settles on the biggest bank failure — and bank rescue — in recent memory, we're still figuring out what happened. But poor investment choices, weak regulation, and customer panic all played their parts. We'll look into the bank's collapse to understand what it can teach us about the business of banking itself.

This episode was produced by Willa Rubin, with help from Dave Blanchard. It was edited by Keith Romer, and engineered by Brian Jarboe. Fact-checking by Sierra Juarez. Our acting executive producer is Jess Jiang.

Music: "I Don't Do Gossip," "Groovy Little Penguins" and "Vision."

Help support Planet Money and get bonus episodes by subscribing to Planet Money+ in Apple Podcasts or at plus.npr.org/planetmoney.

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