News·3 min read

Daily Skimm: SVB, The Oscars, and Sammi

Silicon Valley Bank
March 13, 2023

Make It Make Cents

The Story

SVB has people saying WTF. 

Tell me everything.

Strap in, this is going to be a bumpy Monday. On Friday, Silicon Valley Bank (SVB) collapsed and regulators took over. SVB, the nation’s 16th-largest bank, has clientele including venture capital firms and startups. For a bit, deposits into the bank skyrocketed — up to nearly $200 billion in early 2022. Just like with any bank, the cash doesn’t just sit there waiting for its owner: it gets moved around (think: as loans for people or businesses who need them or as investments). Back when interest rates were low, SVB invested in US Treasury bonds and mortgage-backed securities (MBS). But that turned out to be a terrible, horrible, no good, very bad mistake. 

I’m on the edge of my seat. 

We all know the economy hasn’t been in the best place recently. Tech companies have been struggling (cue the layoffs) and many had to dip into their accounts to pay their bills. SVB didn’t have enough cash on hand for all the demand (remember that big investment we talked about earlier?). So it had the idea to sell bonds to help fund the withdrawals. SVB lost $1.8 billion in the sale and before it could even catch up, venture capital firms dipped out. Then SVB’s stock plunged by 60% and its customers made a bank run (getting $42 billion worth out) before it all imploded. With SVB in the red, financial regulators took over and shut it down. Some companies feared they wouldn’t make payroll. Experts even claimed this could be the end of some startups.

What’s happening now?

After a long weekend of ‘will they or won’t they,’ the Fed, Treasury Dept, and Federal Deposit Insurance Corporation (FDIC) came through (kind of). But not until a second bank, Signature Bank, also failed. Starting today, customers of SVB and Signature Bank will be able to access their deposits in full. Both banks have shut down. In a joint statement, the federal agencies promised taxpayers wouldn’t be responsible for any “losses associated with the resolution” of the bank. The Fed will also create a special loan program that protects other institutions from the fallout. 


SVB’s collapse is the second-biggest bank failure since Washington Mutual crumbled in 2008. The startup world has lost a once-trusty sidekick, and public confidence in the private banking sector has tumbled. Despite the Biden admin’s hail mary, the ripple effects of this crisis are just starting to take form.

And Also...This

What took nearly everything at the Oscars…

Everything Everywhere All at Once.” Last night, the film picked up seven awards at the Oscars — including for best picture and best director. The actors in the film didn’t go empty-handed. Ke Huy Quan won best supporting actor. Jamie Lee Curtis won her first Oscar. And Michelle Yeoh made history, becoming the first Asian best actress winner. Who else made history? Ruth E Carter became the first Black woman to win two Oscars — both for best costume design in the “Black Panther” films. “Navalny,” won the Oscar for best documentary feature. Brendan Fraser sealed his comeback, winning best actor for “The Whale.” It was also a night that was “All Quiet on the Western Front,” which took home four awards. In other moments…a donkey made a surprise appearance. Rihanna lifted us up. And Lady Gaga got intimate.

Where people are mourning…

San Diego, CA. Over the weekend, two migrant smuggling boats capsized off the coast of San Diego. Officials said at least eight people died and called the incident one of the deadliest smuggling operations ever in the area. The nationalities of the passengers are still unknown. Now, rescuers have suspended their search efforts. Officials reportedly estimated 23 people were on the boats. It comes as the Southern California coastal region has seen a 771% increase in human trafficking since 2017, according to the commander of the Coast Guard’s San Diego area.

What’s in short supply…

Sleep. A new study recently looked at Apple Watch data and found that only about a third of participants got the recommended minimum of seven hours of sleep each night. Just the news we needed for daylight saving time. Be right back, going to catch more Zzzs.

Who is splashing back to Earth…

SpaceX astronauts.

What’s sounding sweet…

Sammi’s return.

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