Pension Funds Across Globe Lose Millions of Dollars Due to SVB Collapse

MOSCO (Sputnik) - Pension funds around the world lost millions of dollars as a result of the collapse of Silicon Valley Bank (SVB), US media reported on Tuesday.

The California Public Employees' Retirement System (CalPERS), which manages the largest public pension fund in the United States, the California State Teachers' Retirement Fund (CalSTRS), which is the US's largest teachers' retirement fund, the South Korean National Pension Service (NPS), which manages the world's third-largest public pension fund, and the largest Swedish pension fund, Alecta, are among those who invested in the SVB, American news outlet reported.

In particular, CalPERS invested $67 million in the bank, CalSTRS held $11 million in SVB shares, and Alecta invested about $848.7 million in the SVB, the report added.

On Friday, California regulators shut down SVB, which became the second largest US bank to collapse after the last financial crisis. All the insured deposits were transferred to Deposit Insurance National Bank of Santa Clara, a separate financial institution created by the US federal regulators to protect the insured deposits. The collapse of SVB was connected with the increase in interest rates by the Federal Reserve System and poor risk management, among other factors. On Sunday, authorities also closed the large, New York-based Signature Bank because of systemic risks.

On Monday, US President Joe Biden warned that investors in these banks would lose their money.