Silicon Valley Bank fails due to a lack of capital.

Silicon Valley Bank failed Friday morning, capping off a stunning 48-hour period in which a bank run and a capital crisis resulted in the second-largest financial institution failure in US history. California regulators shut down the tech lender and transferred it to the US Federal Deposit Insurance Corporation. The FDIC, an independent government agency that insures bank deposits and supervises financial institutions, stated that all insured depositors will have full access to their insured deposits by Monday morning and that uninsured depositors will receive a "advance dividend within the next week." On Wednesday, SVB announced that it had sold a number of securities at a loss and that it would issue $2.25 billion in new shares to shore up its balance sheet. On Thursday, the company's stock plummeted, dragging other banks down with it. Higher interest rates hit tech particularly hard, undermining the value of tech stocks and making it difficult to raise funds.

Following the unexpected failure of Silicon Valley Bank, Deputy Treasury Secretary Wally Adeyemo sought to reassure the public about the health of the banking system. He claimed that the Dodd-Frank financial reform overhaul gave regulators the tools they needed to address this and improved bank capitalization. He declined to forecast the broader economic or technological impact.