Were you stuck in the Quantum Realm for the past week? Let’s get you up to speed.

Silicon Valley Bank (NASDAQ:SIVB) is America’s 16th-largest bank and a crucial financial partner for tech and life sciences companies.

Last week, the bank collapsed and here’s how it played out:

• Thursday: Rumors of SVB problems spread, and customers pulled out $42B in a single day — nearly a quarter of SVB’s deposits.
• Friday: US government took over SVB — becoming the largest US bank failure since 2008. Customers could no longer access funds.
• Saturday: Thousands of businesses faced an existential crisis — worried they’d lose their cash and wouldn’t be able to make payroll.
• Early Sunday: Regulators closed 24-year-old Signature Bank (NASDAQ:SBNY) — which had ~$90B in deposits at the end of 2022 (~90% uninsured).
• Late Sunday: The US government announced plans to back SVB and Signature Bank depositors — giving them access to 100% of their money yesterday.

Crisis averted (for now). Biden said he would do “whatever is needed” to prevent more bank runs and will strengthen regulations.

Who’s paying for this? Per Treasury officials, Wall Street will pay for the bill — not taxpayers. A stark difference from the Great Financial Crisis when tax dollars were injected into banks.

What’ll happen to SVB now? JPMorgan and PNC are among the candidates in talks to buy Silicon Valley Bank. HSBC bought SVB’s UK business for just £1, and other parts of SVB’s business are also up for sale.

Will this spread to other banks? That’s the million-dollar question that sent bank stocks cratering yesterday. Other smaller regional banks have seen customers withdraw funds, but more on that below.