SVB's collapse could lead to 'contagion' among regional banks—but experts say it's not a systemic risk to the entire financial system

(Credit: Justin Sullivan—Getty Images)

And the cracks begin to show…

The start-up-focused Silicon Valley Bank (SVB), collapsed this week. It was the second largest bank to go under in U.S. history, only behind the 2008 blow-up of Washington Mutual during the Global Financial Crisis (GFC). Regulators at the California Department of Financial Protection and Innovation closed SVB and took control of its assets Friday after depositors—which were mainly struggling tech start-ups—began a run on the bank. The FDIC has been named as the receiver.