The move follows what amounted to a massive run on the bank which had specialized in meeting the needs of technology companies. The company's Wine Division represented only 2% of its loan portfolio. Some 44% of its was to U.S. venture-backed technology and healthcare IPOs. Much of the rest was to established technology companies.
In many respects, SVB was a victim of the Federal Reserve's relentless raising of interest rates in an attempt to tamp down inflation.
I'll have more in Kane's Beverage Week, which will be out later today.