The ever tumultuous US economy was sent into a downward spiral last weekend when a major bank announced its failure. Silicon Valley Bank, a California-based company that caters to tech sector investors, was shuttered on March 10 due to an unplanned multitude of factors. 

Prior to the failure, the organization announced that it had lost approximately $1.8 billion dollars in revenue (per a Forbes report), sending shockwaves through the banking industry. Shortly thereafter, the federal government moved in to take control of the bank. Silicon Valley Bank’s collapse is the largest reported failure since the 2008 Recession. 

After the initial takeover, attention shifted to the bank customers, many of whom had large savings accounts with the company. Despite the alarming news, company executives were quick to reassure their clients, with chief executive Greg Becker telling people to “stay calm,” per a Los Angeles Times report.  

An individual familiar with the matter told the Los Angeles Times that the call lasted for about ten minutes. It primarily consisted of Becker pleading with customers to “support the bank the way the bank has backed its customers…”

Still, the news did not sit well with many business owners who invested their money in Silicon Valley. Shortly after the bank failure, one Etsy small business owner told NBC Nightly News with Lester Holt that she was worried about the financial security of her family if assets were not regained. 

The federal government has continued to stand behind all SVB customers, saying that they will be fully reimbursed for their losses. The Biden administration has repeatedly insisted that it is not a widespread issue. On the other hand, Republicans have laid the blame on Biden, saying that record-setting inflation contributed to the downfall.

Representative Ronnie Jackston (R-TX), in a social media post released by newrepublic.com, blamed Democrats for the issue. He stated that “the insane left-wing agenda is BANKRUPTING our future…” Jackson’s statements also undermine the current political agenda in the United States, with Democrats and Republicans clashing over major issues. 

The bank turmoil did not end with Silicon Valley. In recent days, other major US banks have reported failure. New York City-based Signature Bank collapsed, with Massachusetts Senator Elizabeth Warren claiming that the bank “engaged in excessive risk taking,” per a Yahoo Finance report. 

The current US banking crisis continues to underscore the delicate state of the economy. Between record-setting inflation and the failure of major banks, pressure has been placed on small business owners who do not know what to expect. Regardless, all of these issues paint a rather cloudy picture for the US economy and those contributing to the enterprise.