Falling Fortunes: Dissecting the Downfall of Silicon Valley Bank

Abstract

Silicon Valley Bank, a prominent financial institution specialising in serving the needs of startups in the United States, underwent a remarkable journey of ascent and downfall amidst the economic disruptions triggered by the COVID-19 pandemic and subsequent Federal Reserve policies. Following the outbreak of the pandemic, the Federal Reserve swiftly implemented quantitative easing measures to bolster the economy, resulting in a surge of investments and funding for startups. This surge translated into a significant influx of deposits within Silicon Valley Bank.