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Silicon Valley Bank Collapse Worst Bank Failure Since 2008

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Silicon Valley Bank Collapse

According to TechCrunch, over 60 YC-backed Indian startups have more than $250,000 stuck in accounts with Silicon Valley Bank, and nearly two dozen have more than $1 million tied to the lender, demonstrating how the worst bank failure since the 2008 financial crisis is also affecting firms 8,000 miles away.

Dozens of young Indian startups backed by YC, Accel, Sequoia India, Lightspeed, SoftBank, and Bessemer Venture Partners banked with Silicon Valley Bank, sometimes as their sole banking partner, and were unable to withdraw funds on Thursday, according to multiple people familiar with the situation.

VCs are wary of disclosing the names of the affected startups for fear of jeopardizing the young firms’ ability to raise capital in the future. Silicon Valley Bank, the 16th largest bank in the United States and a lifeline for startups, was shut down by regulators on Friday, citing “inadequate liquidity and insolvency.” The Federal Deposit Insurance Corporation will work to recover “the maximum amount possible from asset disposition,” according to its website.

Many venture capitalists reported that some Indian firms could not withdraw their deposits from Silicon Valley Bank on time because they did not have another US banking account readily available to hold that capital.

india startupsIndian startups affected by Silicon Valley Bank Collapse

Many Indian startups incorporate in Delaware to raise capital from US venture firms such as Y Combinator. Some SaaS companies are registered in the United States because, despite operating from India, they want to serve international markets and be perceived as a US companies.

Furthermore, for many firms that “flipped” their home base from India to the United States, Silicon Valley Bank was the preferred choice, according to another person familiar with the matter, citing the fact that SVB sponsored many events in India as the lender’s executives pushed to strengthen ties with Indian firms.

According to a partner at one of the top venture funds, nearly all Indian SaaS startups with a significant presence in the United States banked with SVB. Over a dozen Indian SaaS unicorns and many more “soonicorns” are based in the United States.

Many of these young firms did not diversify their funds across multiple banks because operators prefer to avoid increasing administrative costs in the early days of a business. A US-based investor, who spoke anonymously, said he knew that many Indian firms had $4-10 million in their SVB accounts.

SVB was often the default bank for Indian SaaS startups and others backed by YC, who set up shop in the United States and raised their first round there. Mirae Asset’s India head, Ashish Dave, tweeted. “Uncertainty kills them. Growth stocks are safer because they are more diverse.”

Silicon Valley Bank whitehouse

White House and Treasury Department

The failure of SVB has affected more than 1,000 Y Combinator-backed startups, according to Garry Tan, president of Y Combinator. “30% of YC companies exposed through SVB will be unable to pay employees in the next 30 days,” he tweeted.

Meanwhile, California Gov. Gavin Newsom says he’s working with the FDIC and the White House after Silicon Valley Bank was closed down by regulators on Friday.

“I’ve been in contact with the highest levels of leadership at the White House and Treasury in the last 48 hours. Everyone is collaborating with the FDIC to restore order as soon as possible to protect jobs, people’s livelihoods, and the entire innovation ecosystem that has served as a tent pole for our economy, “On Saturday, Newsom stated.

According to a press release issued by the FDIC on Friday, SVP was closed by the California Department of Financial Protection and Innovation, which appointed the FDIC as receiver of the bank’s insured deposits.

Geoff Thomas is a seasoned staff writer at VORNews, a reputable online publication. With his sharp writing skills and deep understanding of SEO, he consistently delivers high-quality, engaging content that resonates with readers. Thomas' articles are well-researched, informative, and written in a clear, concise style that keeps audiences hooked. His ability to craft compelling narratives while seamlessly incorporating relevant keywords has made him a valuable asset to the VORNews team.

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Heavy Rains Ease Around Houston But Flooding Remains After Hundreds Of Rescues And Evacuations

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Houston — Floodwaters stopped some Texas schools on Monday after days of severe rainfall hit the Houston area, resulting in hundreds of rescues, including individuals stranded on rooftops.

According to authorities, a 5-year-old boy died after traveling in a car that was swept away by swift floods.

Although forecasts expected storms to subside in southeastern Texas, high water continued restricting several roadways, leaving homeowners with lengthy cleanups in neighborhoods where rising river levels prompted weekend evacuation orders.

houston

AP News – VOR News Image

Heavy Rains Ease Around Houston But Flooding Remains After Hundreds Of Rescues And Evacuations

Houston is one of the most flood-prone metropolitan areas in the country. Hurricane Harvey poured historic rainfall in 2017, flooding thousands of houses and requiring more than 60,000 rescues.

In one rainy region of Houston, Channelview school officials postponed classes after a survey of their employees revealed that many of them had experienced conditions that prevented them from coming to work.

“These folks have suffered much, people,” Trinity County Sheriff Woody Wallace said during a Facebook video Sunday as he paddled a boat through a rural flooded area. Cars and street signs were partially submerged, peeking above the water around him.

National Weather Service meteorologist Jimmy Fowler reported that areas surrounding Lake Livingston, northeast of Houston, received up to 23 inches (58 cm) of rain over the past week.

houston

AP News – VOR News Image

Heavy Rains Ease Around Houston But Flooding Remains After Hundreds Of Rescues And Evacuations

A 5-year-old kid died in Johnson County, south of Fort Worth, after being carried away after the vehicle he was riding in became caught in swift-moving water near the community of Lillian just before 2 a.m. Sunday, according to officials.

The child and two adults were trying to get to dry land when they were washed away. The adults were rescued and sent to a hospital about 5 a.m., while the infant was discovered dead in the water around 7:20 a.m., according to Johnson County Emergency Management Director Jamie Moore on social media.

According to National Weather Service meteorologist Matt Stalley, storms dumped 9 inches (23 cm) of rain over six to eight hours in areas from central Texas to the Dallas-Fort Worth area.

Since last week, storms have necessitated multiple high-water rescues in the Houston region, including some from flooded home rooftops.

Greg Moss, 68, stayed in his recreational RV on Sunday after leaving his home in Channelview, east Harris County, near the San Jacinto River. The day before, he had packed up much of his stuff and departed before the road leading to his house flooded.

houston

AP News – VOR News Image

Heavy Rains Ease Around Houston But Flooding Remains After Hundreds Of Rescues And Evacuations

“I would be stuck for four days,” Moss remarked. “So now at least I can go get something to eat.”

Moss relocated his things and vehicle to a neighbor’s home, where he intended to remain until the waters receded. He said Sunday that the floodwaters had already receded by a couple of feet, and Moss was not concerned about his home flooding because it is on higher ground.

SOURCE – (AP)

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Cinco de Mayo Parade in Chicago Cancelled Over Gang Violence

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Cinco de Mayo Parade in Chicago Cancelled
Chicago Cancelled Cinco de Mayo on May 5: Getty Images

The Cinco de Mayo parade that was scheduled for Sunday afternoon in Chicago has been canceled for safety reasons. The long-running event was scheduled to start near Damen and Cermak at noon in the Little Village neighborhood.

According to FOX 32 the Chicago Police Department, the decision to cancel the event was made by the 10th District, local officials and parade organizers due to gang violence in the area.  Police said multiple arrests were made, including gun arrests.

Many Americans commemorate Cinco de Mayo, a Mexican festival honoring their 1862 victory over France in the Battle of Puebla. Today is September 16, not Mexico’s Independence Day, as many Americans believe.

Why the U.S. celebrates Cinco de Mayo and its beginnings

In the US, Cinco de Mayo celebrates Mexican-American culture rather than history. Major celebrations take place in Mexican-populated cities including Los Angeles, Chicago, and Houston. Fun includes parades, celebrations, mariachi music, Mexican folk dancing, and traditional dishes and drinks.

Cinco de Mayo celebrates-what? Starting with 1862 battle. Mexican Independence Day (Día de la Independencia) commemorates the country’s independence from Spain on September 16, 1810..

After 50 years, Napoleon III intended to claim Mexico on Cinco de Mayo.

French troops evicted Mexico’s President Benito Juárez and government from Veracruz.At dawn on May 5, 1862, 2,000 Mexican soldiers met 6,000 French troops in Puebla, east-central Mexico.Juárez declared May 5 a national holiday after Mexico declared victory by evening.y.

The battle affected the American Civil War. After the French left North America, the Confederacy couldn’t use them as allies to win.

Despite Cinco de Mayo celebrations in Mexico, especially in Puebla, they pale in comparison to Día de la Independencia, according to García.d.

De Mayo is now a Mexican American holiday

Cinco de Mayo began as a late-19th-century resistance to the Mexican-American War. The Chicano Movement of the 1960s and 1970s popularized the festival.

“It becomes a Chicano holiday, in many ways, linked to the Chicano movement, because we discover Mexicans resisting a foreign invader,” he said.They link Chicano struggle to Cinco de Mayo.”

businesses began commercializing Cinco de Mayo in the 1980s, especially beer businesses and restaurants offering deals and cocktails. García calls it “Corona Day” in jest.”

On Cinco de Mayo, García hopes everyone enjoys Coronas, but with a history lesson to complement..

U.S. events

San Diego: Old Town San Diego will host events May 4 and 5. Live music, folklorico, eating, and drink specials.

To celebrate Cinco de Mayo, Denver hosts a community parade and a taco eating contest on May 4. Denver Civic Center Park will host 10 a.m.–8 p.m. events May 4-5.

St. Paul, Minnesota: One of Minnesota’s major Latino festivals, St. Paul’s West Side de Mayo fiesta. This year’s parade, car, bike, and dog shows will begin at 10 a.m. on May 4.

San Antonio, Texas: From May 4-5, the Historic Market Square will host de Mayo celebrations with live music, Folklorico dancers, Mariachi, food vendors, and more.

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As Putin Begins Another 6-Year Term, He Is Entering A New Era Of Extraordinary Power In Russia

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AP News - VOR News Image

Just a few months shy of a quarter-century as Russia’s leader, Vladimir Putin, will sign a copy of the constitution on Tuesday, ushering in another six-year term as president with unparalleled powers.

Since becoming acting president on December 31, 1999, Putin has shaped Russia into a monolith, crushing political opposition, expelling independent journalists, and promoting an increasing adherence to prudish “traditional values” that push many in society to the margins.

His authority is so strong that other leaders could only stand on the sidelines while Putin began a war in Ukraine, despite predictions that the invasion would bring worldwide condemnation and harsh economic penalties, as well as cost Russia dearly in the blood of its men.

With that amount of control, it is difficult to predict what Putin will accomplish during his next term, both at home and abroad.

putin

AP – VOR News Image

As Putin Begins Another 6-Year Term, He Is Entering A New Era Of Extraordinary Power In Russia

The war in Ukraine, in which Russia is making gradual but continuous battlefield advances, is the primary issue, and he shows no signs of reversing direction.

“The war in Ukraine is crucial to his current political ambition, and I see no reason to believe that will change. “And that affects everything else,” Brian Taylor, a Syracuse University professor and author of “The Code of Putinism,” told The Associated Press.

“It affects who’s in what positions, it affects what resources are available and it affects the economy, affects the level of repression internally,” he said.

In his February State of the Union address, Putin vowed to carry out Moscow’s objectives in Ukraine and do everything necessary to “defend our sovereignty and the security of our citizens.” He stated that the Russian military has “gained a huge combat experience” and is “firmly holding the initiative and waging offensives in several sectors.”

That will come at a high cost, potentially depleting funds for the massive domestic projects and changes in education, welfare, and poverty alleviation that Putin detailed in his two-hour presentation.

Taylor believed such initiatives were included in the address primarily for show rather than to indicate a genuine commitment to implement them.

Putin “thinks of himself in the broad historical terms of Russian territory, putting Ukraine back to where it belongs, and things like that. And I believe them outweigh any more socioeconomic-type programs,” Taylor added.

Suppose the battle does not result in absolute loss for either side, with Russia maintaining some of the territory it has already conquered. In that case, European governments fear Putin will be tempted to engage in additional military adventurism in the Baltics or Poland.

putin

AP – VOR News Image

As Putin Begins Another 6-Year Term, He Is Entering A New Era Of Extraordinary Power In Russia

“It’s possible that Putin does have vast ambitions and will try to follow up on a costly success in Ukraine with a new attack somewhere else,” Harvard international relations expert Stephen Walt wrote in Foreign Policy. “But it is also entirely possible that his ambitions do not extend beyond what Russia has won — at enormous cost and that he has no need or desire to gamble for more.”

However, he said, “Russia will be in no shape to launch new wars of aggression when the war in Ukraine is finally over.”

Others argue that such a sensible worry may not prevail. According to Maksim Samorukov of the Carnegie Russia Eurasia Center, “Moscow is likely to make self-defeating mistakes driven by Putin’s whims and delusions.”

In a Foreign Affairs column, Samorukov stated that Putin’s age may influence his judgment.

“At 71, his awareness of his death undoubtedly influences his decision-making. A rising awareness of his short time influenced his catastrophic choice to attack Ukraine.

Overall, Putin may be entering his new term with less influence than he appears to have.

Russia’s “vulnerabilities are concealed in plain sight. “Now more than ever, the Kremlin makes decisions in a personalized and arbitrary manner, with no basic controls,” Samorukov stated.

“The Russian political elite have grown more pliant in implementing Putin’s orders and more obsequious about his paranoid worldview,” he stated in the letter. The country’s leadership “is at permanent risk of crumbling overnight, as its Soviet predecessor did three decades ago.”

Putin is certain to maintain his hostility against the West, which, he stated in his State of the Nation speech, “would like to do to Russia the same thing they did in many other regions of the world, including Ukraine: to bring discord into our home, to weaken it from within.”

Putin’s hostility against the West stems not only from its backing for Ukraine but also from what he perceives as the erosion of Russia’s moral compass.

Russia banned the fictitious LGBTQ+ “movement” last year, labeling it extreme in what officials claimed was a fight for traditional values such as those promoted by the Russian Orthodox Church against Western influence. Courts also prohibited gender transformation.

“I would expect the role of the Russian Orthodox Church to continue to be quite visible,” Taylor said. He also mentioned the social media anger that erupted during a party held by TV presenter Anastasia Ivleeva, in which guests were urged to arrive “almost naked.”

putin

AP – VOR News Image

As Putin Begins Another 6-Year Term, He Is Entering A New Era Of Extraordinary Power In Russia

“Other actors in the system understand that that stuff resonates with Putin. … There were people interested in exploiting things like that,” he went on to say.

Although the opposition and independent media have nearly evaporated as a result of Putin’s repressive actions, there is still room for future movements to dominate Russia’s information space, such as continuing efforts to construct a “sovereign internet.”

The inauguration takes place two days before Victory Day, Russia’s most important secular festival honoring the Soviet Red Army’s seizure of Berlin in World War II and the war’s terrible difficulties, which cost the USSR around 20 million people.

The defeat of Nazi Germany is important to modern Russia’s character, as is Putin’s justification of the war in Ukraine as an analogous conflict.

SOURCE – (AP)

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