what happened? erica, this happened so fast. it s stunning. silicon valley bank shut down by california regulators after the stock crashed by 60% yesterday after the bank said it needed to rapidly raise cash. this is easily the biggest bank failure since washington mutual fell apart in 2008 during the financial crisis. silicon valley bank, if you haven t heard of it, it is a major lender to tech start-ups. the fdic says that depositors that have $250,000 or less, they are insured here. they will get their money. they will get access to their money as soon as monday morning. but we know that some people, some entities, some start-ups, they have more than $250,000, and it s less clear what s going to happen to them. how did this happen? well, when the fed spikes interest rates, things tend to break. we know that the fed rate hikes have hurt the valuation of the tech companies that this bank catered to, also has hurt the value of the bonds that banks rely on to get cash. erica
in the key 2024 battle ground state of iowa. he has an event soon putting his presidential ambitions very much in the spotlight just days before donald trump campaigns in the state. this as trump has been invited to appear before a grand jury investigating his alleged role in covering up hush money payments to adult film star stormy daniels. the move signaling a decision whether to charge trump may happen soon. welcome to our viewers here in the united states and around the world. i m wolf f bblitzer. you re the situation room. we begin with a historic collapse of a california bank. u.s. stock prices sliding amid questions about whether this is an isolated case or a sign of things to come. cnn s chief white house correspondent phil mattingly is following the story for us along with mark and our own matt edgen matt, first to you, how serious is this bank collapse? reporter: stunning collapse. silicon valley bank may not be a household name but it has more than $200 bil
we ll today, ashleigh. good morning, you know, over the weekend, the government also shut down new york signature bank, so this action will apply to those customers as well. even uninsured depositors have been given the guarantee that their money will be returned in a joint statement by the treasury. federal reserve at f d. i c reads quote, depositors will have access to all of their money starting monday, march 13th no losses associated with the resolution of silicon valley bank will be worn by the taxpayer, the president said. that more will come today. president over the crisis. what s that? , access to all of their money starting monday march 13, what is that? we are expecting to hear from the president at 8:00 and all of this emergency action was a ripple effect. and also protect the payroll for companies with svp. may need recognize like fitbit , there is no consequences to their actions. treasury secretary janet yellen said a bank by little else was never on the
this includes tiktok i chinese company. ashley: the silicon valley bank rattling business to process two sellers on the platform. the company sending a letter friday to business owners saying scheduled transactions would be delayed indefinitely. etsy partners with silicon valley bank, they are still holding our funds and not paying us. that is a little scary. i m a mother of three. i ran a small business. i did this from my home. those funds feed my family and pay bills. ashley: the owner of nina loves fun. thank you so much for being with us. tell us what happen in particular and how you found out what was going on. yeah, so, i started a business during the pandemic. and it turned into my small business fund. while i was still on other platforms, i joined etsy.