March 15, 2023
Founded in 1983, it had grown steadily with a market capitalization of over $10 billion and operations in multiple countries
However, in 2022, SVB Bank shocked the financial world by declaring bankruptcy.
The root cause of SVB Bank's bankruptcy can be traced back to its aggressive expansion strategy.
When the cryptocurrency market crashed in early 2022, the bank was left with a portfolio of investments that was lost.
To make matters worse, SVB Bank had also taken on a significant amount of debt to fund its expansion activities.
The bank's employees also suffered, with many losing their jobs as a result of the bankruptcy.
In the aftermath of its bankruptcy, SVB Bank's clients and investors are left to deal with the worse banking fallout.
The lessons learned from the fall of SVB Bank will be valuable for the entire banking industry moving forward.
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