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.
$42B WITHDRAWN FROM $SIVB YESTERDAY — FULL COLLAPSE pic.twitter.com/4Cr8Mq9ySk
— The_Real_Fly (@The_Real_Fly) March 10, 2023
Did Washington Mutual depositors lose money when the bank failed back in 2008?
No. All deposit accounts were transferred to JP Morgan Chase who acquired WaMu for $1.9 billion. No one lost any money that was deposited in Washington Mutual Bank & no deposit insurance was used. pic.twitter.com/DdbXyCEZcV
— Charlie Bilello (@charliebilello) March 10, 2023
JUST IN: As of December, roughly 95% of Silicon Valley Bank's deposits were FIDC uninsured, per CNBC.
— unusual_whales (@unusual_whales) March 10, 2023
America's 4 top banks – JPMorgan, $JPM, Bank of America, $BAC, Wells Fargo, $WFC, and Morgan Stanley, $MS – had $55 billion wiped off their market value in a single day on Thursday, per BI.
— unusual_whales (@unusual_whales) March 10, 2023
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.
The U.S. banking system is on the verge of a much bigger collapse than 2008. Banks own long-term paper at extremely low interest rates. They can't compete with short-term Treasuries. Mass withdrawals from depositors seeking higher yields will result in a wave of bank failures.
— Peter Schiff (@PeterSchiff) March 10, 2023
Everything is connected eventually 🤨
HT @TomboStocks pic.twitter.com/KIPhZHmBud
— Wall Street Mav (@WallStreetMav) March 10, 2023
JUST IN – U.S. bank regulators seize Silicon Valley Bank in largest bank failure since the Great Recession — AP
— Disclose.tv (@disclosetv) March 10, 2023
BREAKING: Crypto bank BlockFi had $227 million in Silicon Valley Bank, which has now collapsed.
— Win Smart, CFA (@WinfieldSmart) March 10, 2023
SIVB make history: first ever bank to be liquidated with just one Sell rating. pic.twitter.com/dyvCIqgQkp
— zerohedge (@zerohedge) March 10, 2023
h/t TheAlbinoAmigo