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.

Sharing is Caring!

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.

See also  KJP: Joe Biden “has done more to secure the border and to deal with this issue of immigration than anybody else. He really has”... Illegal crossings of migrant families at US-Mexico border hits all-time high

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.


See also  The Federal Reserve suddenly withdraw $50 billion in emergency liquidity from banks

h/t TheAlbinoAmigo

Views: 68

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.