An average 1,600 tech workers have been laid off every day of 2023 so far
Business InsiderNov 25, 2022
The Facts
Financial regulators have closed Silicon Valley Bank (SVB) and taken control of its deposits, according to the Federal Deposit Insurance Corp (FDIC), marking the largest US bank failure since the 2008 financial crisis.
As California regulators shut down the tech lender, the FDIC has taken over the receiver. The FDIC will likely liquidate the bank’s assets to back its customers, and the agency says all insured depositors will have full access to their insured deposits no later than Monday.
The Spin
Pro-establishment narrative
While there is a fear that SVB’s collapse is a sign of a financial crisis similar to that of 2008, that is not the case. The problems that faced SVB were company-specific and tied specifically to the tech sector. The banking sector as a whole is stable, and there is no need to worry about a new financial crisis.
Establishment-critical narrative
SVB’s collapse was not surprising to anyone other than the global markets and so-called “experts.” Rising interest rates have caused massive losses that happen to have dramatically hit SVB first, but the problem is not isolated to SVB. Just like SVB, other banks will look to sweep their losses under the rug and we will continue to see the largest collapses since 2008.
