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Finance · Profile from Finance Research Companion

Silicon Valley Bank (SVB Financial Group)

The California commercial bank that made itself the house bank of the venture-capital economy (start-ups, their investors and their founders), grew from ~$62bn of deposits at end-2019 to ~$189bn at end-2021 as venture money flooded in, parked most of that cash in long-dated mortgage bonds at near-zero yields, and failed on March 10, 2023 after a ~$42bn one-day run by a tightly networked, ~94% uninsured depositor base. It was the second-largest bank failure in US history at the time. Its loans and deposits went to First Citizens BancShares on March 27, 2023, its UK arm to HSBC for £1, and its holding company into Chapter 11, while the government's decision to protect all depositors reopened the debate on deposit insurance, the 2018–19 "tailoring" of bank rules, and how supervisors deal with interest-rate risk.

At a glance

Founded
1983 (bank opened in October 1983, reported), San Jose, California; later headquartered in Santa Clara
Founders
Bill Biggerstaff and Robert Medearis, with Roger Smith as founding CEO (the "poker game" founding story is company lore, reported)
Headquarters
Santa Clara, California (holding company: SVB Financial Group, Nasdaq: SIVB until its 2023 delisting)
Ownership / structure
Public bank holding company; state-chartered member bank (Federal Reserve member, California DFPI charter); subsidiaries included SVB Capital (funds), SVB Securities (formerly SVB Leerink), SVB Private (Boston Private), SVB UK and a 50% China joint venture
Leadership at failure
Greg Becker, president and CEO (2011–2023); Daniel Beck, CFO; Laura Izurieta, chief risk officer until spring 2022, with the post vacant for ~8 months before Kim Olson was named (reported)
Segment and clients
Commercial bank for the "innovation economy": venture-backed technology and life-science companies, venture and private-equity funds (capital-call lines), founders and executives (private banking), plus premium wine clients
Scale at peak
Total assets ~$211bn at end-2021 and ~$212bn at end-2022 (holding company, 10-K: $211.3bn / $211.8bn); deposits ~$189bn (end-2021) and ~$173bn (end-2022, 10-K). The FDIC's failure figures (~$209bn assets, ~$175bn deposits) are the bank's own end-2022 call-report numbers; 16th-largest US bank by assets at failure (reported)
Profit
Net income ~$1.8bn (2021) and ~$1.5bn (2022) (reported, verify)
Market value
Peaked at ~$44bn in late 2021 (stock above ~$750, reported, verify); fell ~60% on March 9, 2023; equity wiped out
Signature moves (incl. failures)
Founding a bank for venture-backed companies (1983); early-1990s real estate losses and refocus (1992); global expansion and China JV (2012); lobbying for and benefiting from regulatory tailoring (2018); the deposit boom and held-to-maturity bond bet (2020–21); SVB Leerink and Boston Private (2019–21); the March 2023 run and failure; sale to First Citizens (2023); litigation, estate and rule changes (2024–26)

9 strategic moves analysed

Each one gets a full strategy file in the companion: context, the decision, the financing, what happened, and the lesson.

  1. 1983

    Founding Bank for the Innovation Economy

    Founding

  2. 1992

    Real Estate Losses and Refocus

    Restructuring (after credit losses)

  3. 2012

    Global Expansion and China Joint Venture

    Launch / partnership (international branches and a joint-venture bank)

  4. 2018

    Regulatory Tailoring and the 250bn Threshold

    Regulatory (lobbying and regulatory change)

  5. 2020

    Deposit Boom and HTM Bond Bet

    Balance-sheet strategy (investment of surplus deposits) — the decision that led to failure

  6. 2021

    SVB Leerink and Boston Private

    Acquisition (two deals building investment banking and private wealth)

  7. 2023

    First Citizens Acquisition

    Acquisition (failed-bank purchase and assumption)

  8. 2023

    March Run and Failure

    Failure (attempted balance-sheet repositioning that triggered a run)

  9. 2025

    Litigation Estate and Regulatory Aftermath

    Bankruptcy / litigation / regulatory settlement and rule changes