SVB’s Stranded Deposits Spread the Pain From Tech to Napa Valley

Most Read from BloombergSilicon Valley Bank, once a darling of the California financial system, fell swiftly on Friday, a day after investors and depositors tried to make $42 billion in withdrawals. The stranded funds show that SVB’s troubles are spreading throughout the Silicon Valley ecosystem and pose a risk to the economy at large. Former Treasury Secretary Lawrence Summers warned that there will be “severe” consequences if regulators don’t fashion a smooth transition for Silicon Valley Bank. And beyond Silicon Valley, even Northern California’s wineries were feeling the pain. Rocket Lab USA Inc.’s shares fell after the launch provider said it has deposits with Silicon Valley Bank.