Silicon Valley Bank Bailout
The Silicon Valley Bank bailout refers to a government-funded financial support package given to the bank in 2008. The bailout was part of the Troubled Asset Relief Program (TARP) created by the United States Congress in response to the financial crisis of 2007–08.
Background
Silicon Valley Bank is an American commercial bank founded in 1983, with presence across the technology and life sciences industries. It was established as a subsidiary of Santa Clara Valley National Bank located in California’s Silicon Valley region. During the turbulent times leading up to and during 2008, SVB saw significant losses due their exposure to tech companies which were greatly affected by changing economic conditions. As such, it became necessary for them to seek external assistance from TARP funds set aside for bailouts related to struggling banks at that time.
Funds Received
On October 3rd 2008, SVB received $235 million from TARP funds after being approved by then President George W Bush’s administration. This money allowed SVB to continue serving its clients while also providing much needed capital relief amid difficult economic times .
Aftermath
Despite receiving funding through TARP, SVB reported a loss of $61 million for fiscal year 2009 despite having paid back all loans associated with this bailout within two years of receiving it on December 13th 2010 without any further taxpayer cost or burden placed upon taxpayers beyond initial investment into this program which saved many businesses and jobs throughout America during these tumultuous times . Today , Silicon Valley Banks continues operations as one of Americas strongest institutions while still providing vital services around banking , lending and other forms of financing options across America including their own cryptocurrency products .
