“It’s a Wonderful Life” until it’s not. Like George Bailey’s Building & Loan in the iconic Christmas movie, previously thriving banks have faced financial ruin as jittery customers lose faith and pull out their funds. George Bailey’s “measly one-horse institution,” was easily saved in the movie, while today’s bankers navigate a complicated environment unseen in George Bailey’s day.

It started when La Jolla’s crypto-lender Silvergate Capital Corp. collapsed, which was initially considered a part of ongoing the crypto industry’s meltdown. But then the tech and venture capital-focused Silicon Valley Bank saw its assets decline in value to the tune of $1.8 billion. After signaling its plan to raise capital through a stock offering, the run on the bank took off at breakneck speed. Within seven days, Silicon Valley Bank’s parent company SVB had filed for Chapter 11 bankruptcy protection.

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]