Business

The failure of Silicon Valley Bank, a mid-sized American lender, sent shock waves through the financial system. SVB specialised in offering banking services to tech startups. It got into trouble as interest rates rose, the value of its bond holdings plunged and nervy depositors took out their money. An attempt to raise capital to plug a shortfall in its finances failed, leading to a run on its deposits and the collapse of its share price. On March 13th HSBC purchased SVB’s British assets for £1, but America’s regulators have struggled to find a buyer for the rest of the bank.