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HomeNewsOpinionWhy the Fed had to step in to save Silicon Valley Bank depositors

Why the Fed had to step in to save Silicon Valley Bank depositors

Aparna Iyer   •

The Fed’s timely action has calmed the markets for now, but the sharp rise in interest rates could mean trouble for other interest-rate sensitive businesses 

SVB lends and invests into tech start-ups, a borrower pool with tight inter-linkages. Start-ups also star in its depositor base, keeping their cash with the bank. And with liquidity ebbing and interest rates rising, several start-ups face a cash crunch

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