It was called as Silicon Valley Bank, but its demise has sent shockwaves around the globe.

The first sizable victim of the deep financial fault line that has been formed since 2008 is the collapse of Silicon Valley Bank (SVBVB -3%)

This is the second-largest default bank in American history. Once again, the bank closure demonstrated how ineffectively markets find prices and attribute risk and return.

SVB ranked as the 16th biggest bank in the United States. Between 2019 and 2022, SVB's balance sheet expanded by 250%. With $209 billion in assets, more than half of which were invested in long-term securities.

SVB obtained $42 billion in account withdrawals on March 8, The bank run was the result of increased cash burn with its startup customers as well as uncertainty about the bank's solvency position.

SVB attempted to close the solvency gap with a combined stock offering of $2.25 billion after selling a $21 billion bond portfolio at a loss of $1.8 billion. At noon on Friday, March 9, FDIC closed the bank.

From Californian winemakers to startups on the other side of the Atlantic, companies are looking for ways to handle their finances after their bank unexpectedly closed down Friday.

Customers in the United States with less than $250,000 in their accounts can rely on FDIC protection. Officials are looking for a buyer for the bank.