Silicon Valley Bank has failed. It’s the second largest bank failure in US history. Roughly 95% of Silicon Valley Bank’s deposits were FIDC uninsured.

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SVB works with literally like half of all US VC-backed startups, and is similarly popular for their banking services in the UK and wider Europe. If they find they’ve lost any significant portion of their funding then we’re going to see a large wave of western start-ups wiped/ significantly hobbled by SVB collapsing.




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Wolf Richter: Bank Stocks Got Wacked: Between a Rock and a Hard Place as Banks Run Out Free Money

Bank stocks got whacked today by an item on the list of disclosures by SVB Financial, owner of Silicon Valley bank. These disclosures included a massive capital raise to shore up the balance sheet, and massive actions to shore up liquidity, including selling $21 billion in “available-for-sale” bonds at a whopper of a loss of $1.8 billion. SVB has lots more bonds it can sell at even bigger losses. SVB’s shares collapsed by 69% today, from $267 at the close on March 8 to $85 afterhours on March 9.

The Invesco KBW Bank ETF plunged by 7.6% today. Even the biggest commercial banks got whacked. The standout on this list is First Republic Bank, whose shares plunged 18.9% today.

 




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h/t TheAlbinoAmigo


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