Silicon Valley Bank collapse: US Treasury monitoring a 'few banks very carefully'

US regulators shut down Silicon Valley Bank (SVB) on Friday and took control of its deposits after the high-tech lender’s share price nosedived. Just hours before the sudden collapse of the Silicon Valley Bank, the biggest bank failure in the US since the 2007-2008 Global Financial Crisis, US Treasury Secretary Janet Yellen said that the Treasury Department is keeping a close look at a few banks.

Speaking at the US House Ways and Means Committee hearing on Friday morning, Yellen said that she was monitoring the recent developments at SVB closely. The bank had been scrambling to raise fresh capital after it suffered massive losses. The company had reported a $1.8 billion loss after it had to sell treasury bonds, which have bled in value due to rapidly increasing interest rates, to meet its deposit obligations.