March 10, 2023 Market participants are discussing the troubles facing Silicon Valley Bank (SVB) as its stock price has fallen more than 60 percent in the past 24 hours. was forced to sell its $21 billion bond portfolio at a loss of $1.8 billion, with CEO Greg Becker insisting that the lender is “well positioned” and “well capitalized” going forward.SVB’s stock, SIVB, was down more than 60% in the last 24 hours after the bank announced it would release news suspended during Friday’s premarket trading session.
With SVB’s foundations shaken, concerns grow
over the possibility of a bailout and market instability.
Market strategists and investors are turning their attention to Silicon Valley Bank (SVB) and U.S. financial institutions as a wholefollowing the voluntary liquidation of Silvergate Bank; SVB is dealing with significant financial woes after its stock,SIVBfell more than 60% in Thursday’s trading session.SVB is well-known for its portfolio of high-tech and venture capital deals, but venture capital activity has been slumping. Down 30% in the past 12 months
SVB then revealed that it would sell its available-for-sale (AFS) bond portfolio for $21 billion, and the bank lost a total of $1.8 billion on the sale; in a statement, SVB CEO Greg Becker said, “We are pleased that interest rates continue to rise, public and private markets We are taking these actions as we expect interest rates to continue to rise, public and private markets to come under pressure, and customer cash burn levels to increase,” said SVB CEO Greg Becker in a statement. Once the balance between venture investment and cash burn is restored, we will be well positioned to accelerate growth and profitability.”
Silicon Valley banks shut down.
down 80% in 2 days to 35. pic.twitter.com/lvZjMUHxzE
– TIC TOC TIC (@TicTocTick) March 10, 2023
SVB is said to have made terrible investment decisions before the rate hike, and the bank’s $21 billion bond portfolio yielded no more than a cash burn, and the value of AFS bonds was severely diminished SVB had invested in government guaranteed debt instruments like US Treasuries, so the Federal Reserve’s Somebelievethat if SVB crashes, its failure could be roughly on the same scale as the bankruptcy of Washington Mutual (WAM).
Good morning, everyone. Silicon Valley Bank is in worse shape. Some customers are trying to withdraw millions of dollars but can’t. Online banking and mobile services are not available to some customers.
Stock down 60% in premarket.
If the bank fails, the second largest… https://t.co/dCnew8tzAP pic.twitter.com/h7YcocnvZX
– According to David Faber of Genevieve Roche-de CNBC,sourcestold reporters that Silicon Valley Bank is currently in talks to sell itself.
What do you think is the future for Silicon Valley Bank and other U.S. financial institutions facing similar challenges, and how might their woes affect the broader economy and high-tech industry? Please share your thoughts in the comments section below.
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