Silicon Valley Bank

SVB, the banking partner for half of US venture-backed tech and life sciences companies, has suffered from a slowdown in venture capital funding, as well as ...

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SVB Financial Group shares plunged more than 62% on Thursday, a day after the lender launched a $1.75 billion share sale to shore up its balance sheet and ...

[(FRC.N)](https://www.reuters.com/companies/FRC.N), a San Fransisco-based bank, sank more than 16.5% after hitting its lowest level since October 2020, becoming the second-biggest decliner in the S&P 500 index. It's not quite cheap enough for a lot of buy-the-dip people to come back in," Trevithick said. Some startups have been advising their founders to pull out their money from SVB as a precautionary measure, the sources added. [(.SPXBK)](https://www.reuters.com/quote/.SPXBK), including a $22 billion drop in the value of JPMorgan. [(WFC.N)](https://www.reuters.com/companies/WFC.N) down 6%, JPMorgan Chase & Co [(JPM.N)](https://www.reuters.com/companies/JPM.N) down 5.4%, Bank of America Corp [(BAC.N)](https://www.reuters.com/companies/BAC.N) 6% lower and Citigroup Inc [(C.N)](https://www.reuters.com/companies/C.N) 4% lower. Zion Bancorp [(ZION.O)](https://www.reuters.com/companies/ZION.O) dropped more than 12% and the SPDR S&P regional banking ETF [(KRE.P)](https://www.reuters.com/companies/KRE.P) slid 8% after hitting its lowest point since January 2021. Funds raised from the sale will be re-invested in shorter-term debt and the bank will double its term borrowing to $30 billion. "We do not believe that SIVB is in a liquidity crisis," Wedbush analyst David Chiaverini said in a report, referring to the company's trading symbol. [broader risks](/markets/us/banks-tumble-svb-ignites-broader-fears-about-sector-2023-03-09/) in the sector. Register for free to Reuters and know the full story [(SIVB.O)](https://www.reuters.com/companies/SIVB.O) shares plunged more than 62% on Thursday, a day after the lender launched a $1.75 billion share sale to shore up its balance sheet and navigate declining deposits from startups struggling for funds amid increased spending. "While VC (venture capital) deployment has tracked our expectations, client cash burn has remained elevated and increased further in February, resulting in lower deposits than forecasted," Becker said in a letter to investors.

Peter Thiel's Founders Fund and a handful of other venture capital firms have advised their portfolio companies to pull money from Silicon Valley Bank.

The bank could try to liquidate its stakes in portfolio companies, which would further drive down the already flailing valuations of many start-ups. Those lower valuations in turn would further weaken the balance sheets of other banks, hedge funds and crossover funds that hold the same assets. “We know you have questions about how to handle the SVB situation. We encourage you to pick up the phone and call your GP. Venture firm Tribe Capital has also advised its portfolio companies to move some, if not all, of their balances from SVB. Are they in better or worse shape?” he said he advised. “But I think this is a buying opportunity.” There is “a good deal of panic,” said Jenny Fielding, managing partner at The Fund, which invests in early-stage companies. He advised them to seek more information before taking any steps. Some VCs said they were standing by the bank. “We have no specific knowledge of what’s happening at SVB,” Tan wrote in a post. A representative for Founders Fund declined to comment.

Some investors are imploring their startups to pull their money out of the bank. SVB CEO Gregory Becker told clients on a Thursday call to stay calm. Sign up ...

But I think it's important that SVB has been a really important stakeholder in the world of venture." The media relations and investor relations departments of SVB did not return an email seeking comment on Thursday. "We spent some time today with our VP of finance assessing the actual risk here, thinking it through and plotting out some pathways forward," he said. "All the VCs sending panic DMs around pulling money out of SVB means there'll be a good ol' run on probably the biggest, blue-chip bank in tech. SVB lends money to startups and keeps their cash deposits, so they can pay staff and other expenses. This caused some VCs and founders to worry about the financial strength of their banking institution.

It was a bad day for the banking industry Thursday. The benchmark KBW Bank Index tumbled as much as 8.1% in its biggest one-day decline since June 2020.

Perhaps Silicon Valley Bank’s troubles are the first sign that a recession has arrived. It’s hard to overstate just how important the technology and startup industries have been to the economy. The biggest loser in that index was SVB Financial Group, the parent of Silicon Valley Bank, which plunged 60%. and Bank of America Corp.; those banking behemoths — and arguably the stock market as a whole — dropped because of Silicon Valley Bank. Since then, the NYSE FANG+ Index is down about 32%. In that sense, it’s no wonder this bank has everyone spooked. The Santa Clara, California-based bank isn’t exactly a household name, and it’s certainly not big enough to spark a national banking crisis. Plus, General Atlantic committed to purchase $500 million of common stock, taking the total amount being raised to about $2.25 billion.To be clear, having to raise money on short notice is never a good look for a bank. The NYSE FANG+ Index, which tracks the performance of such bellwether tech companies as Meta Platforms Inc., Apple Inc., Amazon.com Inc., Netflix Inc. Silicon Valley Bank’s parent surprised the market late Wednesday by saying it had sold about $21 billion of securities from its portfolio, which will result in an after-tax loss of $1.8 billion for the first quarter. Those sectors have been ravaged as rate hikes enacted to combat inflation tank valuations and force companies to search for cash, Bloomberg News notes. It’s not that Silicon Valley Bank was down in sympathy with JPMorgan Chase & Co., Citigroup Inc.

The bank, a linchpin of tech industry financing, is trying to persuade clients not to pull their money over concerns of a liquidity crisis.

He said he felt bad, because Silicon Valley Bank had been a good partner, but saw no upside to staying with it amid the panic and no downside to leaving. “Moody’s does not expect the environment will recover enough for SVB to materially improve its profitability, funding and liquidity,” it said. Some start-ups quickly angled to cash in on Silicon Valley Bank’s struggles. The most immediate way to forestall the crisis would be to persuade clients not to pull their funds. Roseanne Wincek, an investor at Renegade Partners, [wrote](https://twitter.com/imthemusic/status/1633963212046753793) that a bank run caused merely by panic would be a “self own” for the industry. Becker’s letter, Moody’s downgraded the bank’s bonds rating and slashed its outlook to negative, from stable. The vast majority are either lent to other customers or invested to earn a return. “There are two things in life that only exist if you believe in them: God and bank runs,” said Anshu Sharma, chief executive of Skyflow, a data privacy start-up. But a number of investors, including Arjun Sethi, an investor at Tribe Capital, advised companies to move some or all of their money from the bank. At the end of last year, Silicon Valley Bank reported $212 billion in customer assets. The bank disclosed that it had sold off $21 billion of its most liquid, or easily tradable, investments; borrowed $15 billion; and organized an emergency sale of its stock to raise cash. Silicon Valley Bank’s stock price plummeted 60 percent on Thursday as investors rushed to sell shares after the announcement.

The four largest US banks lost a total of more than $50bn in market value on Thursday.

Banks tend to hold large portfolios of bonds and as a result are sitting on significant potential losses. They bet wrong," he added. Now VCs are telling their portfolio companies to pull their funds," she said. And I think that's really what happened. She is advising companies in her portfolio to withdraw funds. The interesting thing is that it's the most start-up friendly bank and supported start-ups so much through Covid.

Shares in SVB's holding company SVB Financial plunged 60 per cent on the news, but even some of Wall Street's biggest banking names felt the reverberations with ...

The woes of the venture world aren’t reflective of the broader US economy which is running hot and at near full employment. The existing SVB customers haven’t been able to slow their cash burns and that has further drained money out of the bank. SVB now needs to raise $US1.25 billion via a stock placement and another $500 million in convertible bonds to plug this gap. When a bank’s customer spends or withdraws money, that bank has to finance the withdrawal. To demonstrate a US 3 to 7 year bond fund has lost about 8 per cent in price terms over 12 months.) The $US2.3 billion ($3.5 billion) injection was required to plug a hole in its balance sheet to cover losses on a fire sale of safe assets. That’s where the pain will almost certainly be felt. Connect with Jonathan on [[email protected]](mailto:[email protected]) The slowdown in venture fund raisings has meant less money flowing into SVB deposit accounts. That in turn infected the VC world as moonshot venture bets have been rapidly scaled back. But the revelation of the bond losses and the need to raise capital has clearly spooked the market. The scourge of inflation has forced central bankers to aggressively raise interest rates, and the increase in the cost of money forced sharemarkets to reconsider the companies that are only expected to make money well into the future.

More than a dozen local firms are among those who have pulled money from Silicon Valley Bank, with the New York-listed group's abrupt capital raise sparking ...

But Silicon Valley Bank is facing a particularly acute crisis because most of its customers are start-ups that have relied on new funding from venture capital backers, and lacking that, must manage their cash burn. “We’re trying as hard as we can to ensure that people make rational decisions, and consider their individual circumstances in taking action.” As the bank’s start-up customers failed to raise new funding or slow their cash burn, the depletion of its deposit base forced it to liquidate $US21 billion in safe assets at a loss. Commonwealth Bank slid 3.3 per cent to $96.51, Westpac fell 2.6 per cent to $21.79, ANZ was off 2.6 per cent and National Australia Bank was down 3 per cent at market close. But the incident has sent shockwaves through both Wall Street and Silicon Valley. “It’s difficult for us to know how deeply this crisis of confidence runs,” Paul Bassat, founder of Square Peg Capital, said on Friday.

A major sell-off in shares of a key Silicon Valley financial institution is fueling fears the tech industry's economic situation is worsening.

But most of them have [cut costs and fired workers](https://www.washingtonpost.com/technology/2023/03/02/big-tech-moonshots-google-meta-amazon/?itid=lk_inline_manual_60), something that few have had to do over the past decade. Founded in 1983, Silicon Valley Bank grew alongside the tech industry, weathering the ups and downs inherent to the sector. I do have faith that we have the tools for this sector and for our regulators.” Investors now anticipate the central bank’s benchmark rate may rise to near 6 percent from a current target range of 4.5 percent to 4.75 percent. A news release was taped to the front glass doors announcing that regulators had closed the bank. A sale to another bank, however, could come at a loss, in which case the FDIC may have to provide federal support to facilitate the sale. A spokesperson for the bank did not respond to a request for comment. For now, many banking regulators are confident that the contagion will not spread to the financial sector more broadly. As the voting members of the FDIC received regular virtual briefings throughout the day on Thursday, regulators zeroed in on just how big the bank was, the people said. “No bank understands start-ups and tech the way they do,” said Antoine Nivard, co-founder and general partner at Blank Ventures. Silicon Valley Bank’s rapid failure shocked the tech industry, prompting fears that the economic situation for the sector is worse than previously thought. Start-up founders and venture capitalists fretted that money needed to pay employees could be lost or frozen by the bank’s collapse.

Several top VC firms, including Coatue and Founders Fund, today suggesting pulling money out of SVB.

One tells Axios that his firm's advice to companies is to have six months of cash somewhere else, but beyond that not to contribute to a possible bank run. In a follow-up call, Gilbert said that he finally had reached somone at SVB, which seemed to "unplug things" and most of the wires had now gone through. Zoom out: Some venture capitalists and founders tell Axios that they've struggled to move their money.

Shares in the parent company of Silicon Valley Bank fell by 60% after the bank said it is taking steps to cover losses on its balance sheet.

The plunge [dragged down](https://fortune.com/2023/03/09/bank-stocks-sink-silicon-valley-bank/) banking stocks across the U.S. [Fortune](https://fortune.com/2023/03/09/silicon-valley-bank-panic-venture-investors-founders/) are also grasping for 2008 references. “After what the Feds did to [JPMorgan] after it bailed out Bear Stearns, I don’t see another bank stepping in to help [Silicon Valley Bank]” he The investment bank eventually spent [SVB Financial Group](https://fortune.com/company/svb-financial-group/), the parent company of Silicon Valley Bank, fell 60% on Thursday, [one day after the bank](https://www.wsj.com/articles/bond-losses-push-silicon-valley-bank-parent-to-raise-capital-125e89d4) said it lost $1.8 billion selling its investments, and would sell shares to raise $2.2 billion. SVB’s leadership are now trying to reassure customers that the bank is not in danger, and asked for their trust. In 2008, the U.S. That fear is driving startups and venture capital firms to [Citigroup](https://fortune.com/company/citigroup/), [Bank of America](https://fortune.com/company/bank-of-america-corp/), JPMorgan and [Wells Fargo](https://fortune.com/company/wells-fargo/). In March 2008, JPMorgan stepped in to acquire the failing decades-old investment bank and prevent its collapse. But the deal also meant that JPMorgan was on the hook for the legal troubles of Bear Stearns and the other troubled institutions it acquired. “SVB is not going to go down,” one venture investor told [Fortune](https://fortune.com/2023/03/09/silicon-valley-bank-panic-venture-investors-founders/).

Bill Ackman said that the US government can also guarantee deposits in exchange for a dilutive warrant issuance and other covenants and protections.

[Subscribe](https://economictimes.indiatimes.com/subscription?newslettertype=div_3125&email=2&utm_source=newsletter&utm_medium=email&utm_campaign=DailyTop5)to our daily newsletter for the latest and must-read tech news, delivered straight to your inbox. Combined with higher costs of capital, that is pressuring margins and income, he added. Ackman said that the US government can also guarantee deposits in exchange for a dilutive warrant issuance and other covenants and protections. https://t.co/QmeVVzmaaK— Bill Ackman (@BillAckman) https://t.co/40ZwUA9P4M— Bill Ackman (@BillAckman) https://t.co/qgEYADiDH5— Bill Ackman (@BillAckman)

Global shares hit a two-month low on Friday as investors dumped banks on fears of contagion after a capital raising at Silicon Valley Bank, with U.S. ...

Fed funds futures also rallied strongly, pulling the market-implied peak in U.S. ING bank said U.S. A reclassification of the U.S. The benchmark 10-year JGB yield, which the BOJ pins within 50 basis points either side of zero, pulled back sharply from that ceiling to last sit at 0.445%. Federal Reserve Chair Jerome Powell has explicitly referred to Friday's jobs data as a key driver, together with next week’s U.S. [Silicon Valley Bank](/business/finance/silicon-valley-bank-sell-stock-cope-with-cash-burn-2023-03-09/) [(SIVB.O)](https://www.reuters.com/companies/SIVB.O) had sought on Thursday to reassure tech clients as its stock collapsed by 60% while it was attempting to raise funds to plug a $1.8 billion hole caused by the sale of a loss-making bond portfolio. U.S. payrolls figures also a focus ahead of the Federal Reserve meeting later this month. The U.S. - U.S.

What is SVB business? Silicon Valley Bank is one of the oldest and largest banks in the Valley and manages a majority of local deposits. The group largely focuses on lending ...

[Sensex](https://economictimes.indiatimes.com/indices/sensex_30_companies)and [Nifty](https://economictimes.indiatimes.com/indices/nifty_50_companies)Track [latest market news](https://economictimes.indiatimes.com/markets/stocks), [stock tips](https://economictimes.indiatimes.com/markets/stocks/recos)and [expert advice](https://economictimes.indiatimes.com/markets/expert-view)on [ETMarkets](https://economictimes.indiatimes.com/markets). [Udak Kotak](/topic/udak-kotak)tweeted in reaction to the SVB crisis. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. [Deepak Shenoy](/topic/deepak-shenoy)of Capitalmind believes SVB is not the modern Enron or Lehman, but LTCM or Long-Term Capital Management. This raised concerns over whether investors’ money were safe and whether fundraising was sufficient to make up for the losses. For fastest news alerts on financial markets, investment strategies and stocks alerts, [subscribe to our Telegram feeds](https://t.me/joinchat/J60pKE7SOStsj5sI8nDmHQ).) Besides, it also offers private banking services for high-net-worth individuals. This worry triggered the sell-off in the stocks and raised doubts over the sustainability of the business. Silicon Valley Bank is one of the oldest and largest banks in the Valley and manages a majority of local deposits. [Wall Street](/topic/wall-street)investors and triggered a massive sell-off in the group's shares. Not only the shares, but even the bond prices of the group collapsed and created a panic in the market. [SVB](/topic/svb)Financial Group, which runs one of the largest American commercial banks – [Silicon Valley Bank](/topic/silicon-valley-bank)– on Wednesday announced a $1.75 billion share sale programme to beef up its balance sheet.

Global shares hit a two-month low on Friday as investors dumped banks on fears of contagion after a...

The benchmark 10-year JGB yield, which the BOJ pins within 50 basis points either side of zero, pulled back sharply from that ceiling to last sit at 0.445 per cent. Bitcoin was off 2.0 per cent at $US19,924 ($A30,236) as the fallout from the demise of Silvergate weighs on the broader mood in digital assets. The yen was last down about 0.4 per cent at 136.615 per dollar after a knee-jerk drop of as much as 0.6 per cent. Fed funds futures also rallied strongly, pulling the market-implied peak in US rates from above 5.6 per cent to just below 5.5 per cent, and pricing about a 50 per cent chance of a 50 basis point Fed increase this month, down from more than 70 per cent a day earlier. A reclassification of the US S&P index next week will increase the number of banks in the benchmark to support the sector, Spencer said. Silicon Valley Bank had sought on Thursday to reassure tech clients as its stock collapsed by 60 per cent while it was attempting to raise funds to plug a $US1.8 billion ($A2.7 billion) hole caused by the sale of a loss-making bond portfolio.

The FT News Briefing is produced by Fiona Symon, Sonja Hutson and Marc Filippino. The show's editor is Jess Smith. Additional help by Peter Barber, Michael ...

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Global shares hit a two-month low on Friday as investors dumped banks on fears of contagion after a capital raising at Silicon Valley Bank, with U.S. ...

Shares of SVB Financial Group, known as Silicon Valley Bank, tumbled for a second day Friday and weighed on the whole banking sector again.

Concern among founders and venture capital investors spiked earlier this week after Silicon Valley Bank surprised the market by announcing late Wednesday it needed to raise $2.25 billion in stock. "Falling VC funding activity and elevated cash burn are idiosyncratic pressures for SIVB's clients, driving a decline in total client funds and on-balance-sheet deposits for SIVB," wrote the Morgan Stanley analysts. The bank also previously reported more than $90 billion in held-to-maturity securities, which wouldn't necessarily incur losses unless it was forced to sell them before maturity to cover fleeing deposits. [Signature Bank](/quotes/SBNY/), which is known to cater to the crypto sector, declined 22% following a 12% tumble Thursday. As the Federal Reserve consistently raises interest rates, it is lowering the value of Treasurys. The shares were down another 62% in premarket trading Friday before they were halted for pending news. Peter Thiel's Founders Fund and other large venture capital firms asked its companies to pull their funds from SVB, [First Republic Bank](/quotes/FRC/) fell 15% following a 17% slide Thursday. - The shares were down another 62% in premarket trading Friday before they were halted. However, rapid deposit outflows outpaced the sale process, which made it difficult for any buyer to do a realistic assessment, Faber reported. They did not open for trading with the market at 9:30 a.m. The failure raised fears more banks would incur heavy losses on their bond portfolios.

European banking stocks sold off sharply in early trade Friday as a global contagion effect took hold after shares in U.S. bank SVB Financial plunged 60%.

The fact SVB's share placing has been accompanied by a fire sale of its bond portfolio raises concerns," Mould said. [Societe Generale](/quotes/GLE-FR/), [HSBC](/quotes/HSBA-GB/), [ING Groep](/quotes/INGA-NL/) and [Commerzbank](/quotes/CBK-DE/) all fell more than 5%. The 40-year-old company was forced into a fire sale of its securities on Thursday, dumping $21 billion worth of holdings at a $1.8 billion loss while raising $500 million from venture firm General Atlantic, according to a [financial update](https://ir.svb.com/events-and-presentations/event-details/2023/Q123-Mid-Quarter-Update/) late Wednesday. The Euro Stoxx Banks index was on pace for its worst day since June, led by a decline of more-than 8% for [Deutsche Bank](/quotes/DBK-FF/). - The Euro Stoxx Banks index was on pace for its worst day since June, led by a decline of more-than 8% for Deutsche Bank.

Already this week, crypto lender Silvergate Capital Corp. said it planned to shut down. On Thursday, the S&P 500 Financials Index slumped 4.1% — its worst day ...

The lender's CEO on Thursday urged its clients to remain calm, assuring them that the bank had “ample liquidity,” while other venture capitalists cautioned ...

banks [losing](https://www.wsj.com/livecoverage/stock-market-news-today-03-09-2023/card/four-biggest-u-s-banks-lose-47-billion-in-market-value-8fmAmiqs4PDb1F60OSFg?mod=article_inline) more than $52 billion from their valuation. [announcement](https://www.prnewswire.com/news-releases/svb-financial-group-announces-proposed-offerings-of-common-stock-and-mandatory-convertible-preferred-stock-301766247.html) that the lender lost $1.8 billion after selling securities worth $21 billion to hedge against a challenging market. SVB Financial’s shares were hit hard on Thursday after it announced it had sold around $21 billion worth of securities from its portfolio at a loss of $1.8 billion. He [reported](https://techcrunch.com/2023/03/09/silicon-valley-back-withdrawal-issues/). [reported](https://www.semafor.com/article/03/09/2023/some-vc-firms-are-urging-founders-to-pull-money-from-troubled-silicon-valley-bank).

"Silicon Valley Bank, another crypto-friendly bank, comes under pressure. The bank is generally regarded as one of the default fallback options for industry ...

The forecast for the terminal rate, the level where the tightening cycle is likely to end, has also declined to 5.5% from 5.65% reached early this week after Fed Chairman Jerome Powell's hawkish testimony. CoinDesk is an independent operating subsidiary of [Digital Currency Group](https://dcg.co/), which invests in [cryptocurrencies](https://dcg.co/#digital-assets-portfolio) and blockchain [startups](https://dcg.co/portfolio/). [ Consensus 2023](https://consensus.coindesk.com/), CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. jobs report for February will likely show a payrolls increase of 205,000 in January, marking a slowdown from January's blowout 517,000 figure. So, yields and rate hike odds could rebound, adding to bearish pressures around risky assets in case the payrolls data blows past expectations. According to Reuters, the U.S. This might be the first instance of bond yields falling along with stocks and cryptocurrencies since the Fed began its tightening cycle last year – a good old-fashioned risk aversion where investors seek safety under bonds. The bank is generally regarded as one of the default fallback options for industry participants impacted by the collapse of Silvergate. The two-year yield has dropped to 4.83% from 5.07%. (The two move in the opposite direction.) That's evident from the sharp slide in U.S. The 10-year yield traded at 3.85% at press time, down 15 basis points from Thursday's high of 4%.

Silicon Valley Bank's ongoing crisis has brought one bugbear of the cryptocurrency market's 2022 rout front and centre of the traditional financial sector:.

In the prospectus’ words: “Earlier today, SVB completed the sale of substantially of its available for sale securities portfolio. What will happen if they need to shore up cash? This caused the market to think… It was far from the only issue facing Silvergate and we shouldn’t get too caught up in finding a common thread between the two; Silvergate Bank died largely because was a bank to the cryptocurrency sector whereas SVB is focused on the broader tech sector. Silvergate Bank was forced into voluntary liquidation on Thursday after suffering around $886mln in realised losses on its bond portfolio, for it, too, was forced to sell the at a discount to satisfy withdrawal requests. In relation to the

SVB stock — 5,44% of its shares are sold short — fell because its depositors are taking their money out in droves. To raise capital, on Wednesday SVB sold a ...

Its customer base consists of cash burning startups and venture capital firms that are unable to profit due, in part, to the near shut-down of the IPO market. According to CNBC, “the dearth of initial public offerings and continuing drawdown in valuations among once highfliers suggests that there’s much more pain to come in 2023.” Moody’s downgraded the bank’s bonds rating and slashed its outlook to negative, from stable. The Times reported that SVB, like many banks, lacked sufficient funds to fulfill a surge in requests for customers to withdraw their money. Although that could be difficult to do. The New York Times reported that “Sunny Juneja, founder of Canopy Analytics, a Bay Area start-up focused on real estate technology” tried to move his startup’s “few million dollars” out of SVB but could not do so March 9 because its “online portal was down.” SVB stock — 5,44% of its shares are sold short — fell because its depositors are taking their money out in droves. - What prompted SVB to raise capital at such a high cost? Other banks have underwater bond portfolios as well, but they generally have lots of retail deposits, which are much less rate-sensitive than SIVB's deposits,” Oppenheimer analyst Chris Kotowski Pitchbook reported that venture capital deal activity fell over 30% in 2022 to $238 billion. So, why the Sam Hill would banks lend money to cash burning tech startups and their venture capital firms? To raise capital, on Wednesday SVB sold a bond portfolio at a loss and launched an emergency capital raise.

SVB shares were halted before the official opening of trading on New York's Nasdaq exchange. California-based SVB had hoped to price the $2.25bn share and ...

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Shares of Silicon Valley Bank Financial fell 60% Thursday. CNBC did not identify the buyer. It reports that Silicon Valley Bank attempted to raise money from ...

Why it matters: SVB is a cornerstone of the tech and life sciences startup economy. It's also America's 16th largest bank, and its failure would be the biggest ...

[collapse of Silicon Valley Bank](https://www.axios.com/2023/03/10/silicon-valley-bank-government-control-fdic). - Some critics of those firms note that the U.S. It's also America's 16th largest bank, and its failure would be the biggest since Washington Mutual. [conceded](https://nypost.com/2023/03/09/silicon-valley-bank-ceo-to-investors-stay-calm-and-dont-panic/)that some clients are "starting to panic." [venture capital backers](https://www.axios.com/2023/03/09/silicon-valley-bank-svb-spooks-venture-capital), panicked. [Silicon Valley Bank](https://www.axios.com/2023/03/09/silicon-valley-bank-launches-new-share-sale) appears to have imploded within 24 hours, leaving Silicon Valley [in a state of shock](https://www.axios.com/2023/03/09/silicon-valley-bank-svb-spooks-venture-capital). [publicly](https://twitter.com/hdubugras/status/1633933319418290176), but most privately. [CNBC reported](https://www.cnbc.com/2023/03/10/silicon-valley-bank-financial-in-talks-to-sell-itself-after-attempts-to-raise-capital-have-failed-sources-say.html)that the share sale had failed and SVB is actively seeking a buyer. [SVB](https://www.axios.com/2023/03/10/behind-silicon-valley-banks-sudden-rush-for-cash) is a cornerstone of the tech and life sciences startup economy. - That said, there is still some contagion fear (even if that doesn't seem to make much sense). [balance sheet bolstering plan](https://ir.svb.com/news-and-research/news/news-details/2023/SVB-Financial-Group-Announces-Proposed-Offerings-of-Common-Stock-and-Mandatory-Convertible-Preferred-Stock/default.aspx), after rising interest rates had sparked losses on its Treasury and mortgage-backed securities portfolios. [Economy & Business](https://www.axios.com/economy-business)

Global shares hit a two-month low on Friday as investors dumped banks on fears of contagion after a...

The benchmark 10-year JGB yield, which the BOJ pins within 50 basis points either side of zero, pulled back sharply from that ceiling to last sit at 0.445 per cent. Bitcoin was off 2.0 per cent at $US19,924 ($A30,236) as the fallout from the demise of Silvergate weighs on the broader mood in digital assets. The yen was last down about 0.4 per cent at 136.615 per dollar after a knee-jerk drop of as much as 0.6 per cent. Fed funds futures also rallied strongly, pulling the market-implied peak in US rates from above 5.6 per cent to just below 5.5 per cent, and pricing about a 50 per cent chance of a 50 basis point Fed increase this month, down from more than 70 per cent a day earlier. A reclassification of the US S&P index next week will increase the number of banks in the benchmark to support the sector, Spencer said. The yen eased after the Bank of Japan kept stimulus settings steady, while the dollar held its breath ahead of the US data.

SVB Financial Group is reportedly exploring a sale after selling billions of dollars of assets to make its customers whole and sparking a panic on Wall ...

On Thursday, as bank stocks around the world fell in response to the crisis at SVB, contagion fears spread on Wall Street. “Treasury is aware of recent developments. Signature Bank, another crypto-friendly lender, was hit hard by the bank selloff, with shares sinking 30% before being halted for volatility Friday. The stock tumbled 60% Thursday after the bank said it had to sell a portfolio of US Treasuries and $1.75 billion in shares at a loss to cover rapidly declining customer deposits — essentially facing a run on the bank. When interest rates were near zero, banks loaded up on long-dated, low-risk Treasuries. Back then, he said, “banks were taking excessive risks, and people thought everything was fine.

The Federal Deposit Insurance Corporation took control of the bank's assets on Friday. The failure raised concerns that other banks could face problems, ...

In its surprise disclosure on Wednesday, the bank admitted that it had lost nearly $2 billion when it was all but forced sell some of its holdings. The bank’s deposits doubled to $102 billion at the end of 2020 from $49 billion in 2018. To pay those redemption requests, Silicon Valley Bank had to sell off some of its investments at exactly the wrong time. The bank as of Friday morning was working with advisers on a potential sale, a person with knowledge of the negotiations said, and had halted trading in its shares in the wake of a rapid fall. Flush with cash from high-flying start-ups, it bought huge amounts of bonds more than a year ago, just before the Federal Reserve began to raise interest rates. Silicon Valley Bank, a lender to some of the biggest names in the technology world, did just that on Friday, becoming the largest bank to fail since the 2008 financial crisis. Though Silicon Valley Bank advertised itself as a “partner for the innovation economy,” it was being shaken by decidedly old-fashioned decisions. created a new bank, the National Bank of Santa Clara, to hold the deposits and other assets of the failed one. The regulator said in a news release that the new entity would be operating by Monday and that checks issued by the old bank would continue to clear. Silicon Valley Bank’s spiral accelerated with incredible speed this week, but its troubles have been brewing for more than a year. After a slump on Thursday, shares of JPMorgan, Wells Fargo and Citigroup all nudged higher on Friday. Customers with accounts that surpassed that amount — the maximum covered by F.D.I.C.

Silicon Valley Bank, he 18th largest bank in the U.S. by total assets, was closed down by regulators today after it suffered a bank run.

At the time of its closure, Silicon Valley Bank was the 18th largest bank in the U.S. Silicon Valley Bank unexpectedly announced on Wednesday that it was taking extraordinary and immediate steps to shore up its finances. [CNBC](https://www.cnbc.com/2023/03/10/silicon-valley-bank-financial-in-talks-to-sell-itself-after-attempts-to-raise-capital-have-failed-sources-say.html), SVB Financial (Silicon Valley Bank’s parent company), having failed to raise sufficient capital to shore up its operations, then began seeking to sell itself. by total assets, was closed down by regulators today after it suffered a bank run. The FDIC indicated that all insured depositors would have full access to their insured deposits by March 13, while uninsured depositors would receive certificates for the amounts of their uninsured funds. According to

SVB had prompted a global sell-off in banking stocks after it launched a rescue share sale to plug a near-$2bn (£1.7bn) hole in its finances. The bank lost the ...

It was not immediately clear what the implications for SVB’s UK operations would be, though its roughly 3,5000 customers were understood to have been pulling deposits in light of the turmoil. Shares in NatWest closed 2.5% lower, Barclays fell nearly 6% and Lloyds Banking Group ended the day down 4.5%. Furthermore, UK lenders also hedge risks linked to those portfolios. Those bonds had dropped in value as a result of rising interest rates, leaving SVB with a shortfall. Those without deposit insurance will be paid an advanced dividend next week. The bank lost the funds when it sold a portfolio of bonds in response to a decline in customer deposits.

California banking regulators on Friday closed SVB Financial Group , the largest bank failure since the financial crisis, moving quickly to protect ...

"There are some aspects to what is occurring at SVB Financial that are common to the banking system more broadly. We believe the sell-off was overdone as large banks have a lot more liquidity than smaller banks, they are more diversified with broader business models, have a lot of capital, are much better managed in regards to risk, and have a lot of oversight from regulators... The bank reports that 39% of its deposits are from early-stage companies in the technology and healthcare sectors. But all banks may feel increasing pressure to raise the rates they pay on deposits in order to retain them as they compete with attractive Treasury and money-market yields." The deposit base from the major banks is much more diversified than SVB and the big banks are in good financial health." The good news is they are in trouble because they specialized in venture-backed technology and lending to startups, while other more traditional banks aren’t heavy in those areas. That's why the banks are selling off and the market is nervous." "We believe that the sharp sell-off in bank stocks yesterday was likely overdone as investors extrapolated idiosyncratic issues at individual banks to the broader banking sector. And while this week’s stock price action may have seemed shocking, the reality is that some of the related issues could certainly take a while to resolve. "There could be a bloodbath next week as banks are in trouble, the short sellers are out there and they are going to attack every single bank, especially the smaller ones." And that only adds to elevated anxiety about where the equity market is going to be a couple of months down the road." "During a period of uncertainty, the initial reaction is going to be to reduce positions.

US shares tumbled in broad selling with the yield on the US 10-year note plunging more than 20 basis points. Bitcoin falls below $US20,000.

[US economy adds 311,000 jobs in February, topping estimates](https://www.afr.com/policy/economy/us-economy-adds-311-000-jobs-in-february-topping-estimates-20230311-p5cr8p) The unemployment rate ticked up to 3.6 per cent as the labour force grew, and monthly wages rose at the slowest pace in a year. [Summers sees near even odds Fed must lift to 6pc or higher](https://www.afr.com/policy/economy/summers-sees-near-even-odds-fed-must-lift-to-6pc-or-higher-20230311-p5cr8n) The former US Treasury secretary said the February jobs data suggest the economy is still expanding “above the speed limit”. Where the 2000s-era Fed ignored obvious recklessness among banks and leveraged asset managers, the current Fed seems to be overly concerned with asset prices and appearances. [Silicon Valley Bank: where the bond and tech crashes collide](https://www.afr.com/markets/equity-markets/silicon-valley-bank-where-the-bond-and-tech-crashes-collide-20230310-p5cr0d) The troubles at the VC community’s favourite bank are a result of two powerful macro trends feeding off each other. [Fed rate cut by year-end back in favour as banks are roiled](https://www.afr.com/companies/financial-services/fed-rate-cut-by-year-end-back-in-favour-as-banks-are-roiled-20230311-p5cr8m) Pricing on swaps linked to Fed meetings suggest traders now expect that the central bank’s policy rate will peak near 5.4pc in July, and end the year near 5.1pc. Barry Ritholtz said the Fed is “breaking things and it could get worse”. “The focus will fall on SVB contagion risks and Tuesday’s inflation report,” Oanda’s Edward Moya said in a note. This new Fed funds path projection appears more likely to be restrictive enough to generate a slowdown. The two-year fell to 4.59 per cent; the 30-year was at 3.71 per cent. The yield on the US 10-year note plunged 20 basis points to 3.70 per cent at 4.59pm in New York. The US economy added 311,000 jobs last month, more than expected. SVB hopes to find a buyer for itself or some of its assets by Monday, Bloomberg reported.

One of America's biggest banks has collapsed and been taken over by the government in the biggest financial crisis since the GFC. Benedict Brook in the US.

Banks have also been impacted by the increase in interest rates. It had total assets of more than $300bn. Present in the United States, Europe, Asia and Israel, SVB offered a range of financial services to start-ups, from simple bank accounts to advisory services on how to attract investments, as well as private banking and wealth management. The SVB crisis sparked a sell-off in European bank shares and volatility in US bank shares. One of the largest banks in the US has spectacularly collapsed after it faced a bank run with customers scrambling to withdraw their cash. One of America’s biggest banks has collapsed and been taken over by the government in the biggest financial crisis since the GFC.

The FDIC said in the announcement that insured depositors will have access to their deposits no later than Monday morning. SVB's branch offices will also ...

$12 billion $13 billion $20 billion $25 billion $19 billion $32 billion $173 billion $212 billion $188 billion $307 billion The FDIC said loan customers of SVB should continue to make their payments as normal. The FDIC said in the announcement that insured depositors will have access to their deposits no later than Monday morning.

Silicon Valley Bank (SVB)'s collapse after a plunge in value may pose a major risk to the UK tech industry.

SVB was founded in 1983 and has been in the UK market since 2004. SVB has in the past said it provides accounts for half of US startups. That hasn’t prevented UK startups from withdrawing at least some of their funds from SVB UK. On Thursday the Nasdaq-listed US parent company lost more than 60% of its share value. Regulators in California have closed Silicon Valley Bank (SVB) after a liquidity crisis at the startup lender prompted panic withdrawals. However, he added that he wasn’t “sure if [it’s] justified”.

The California Department of Financial Protection and Innovation said it has taken possession of Silicon Valley Bank, citing inadequate liquidity and ...

[SVB depositors face prisoner’s dilemma](https://www.afr.com/world/north-america/svb-depositors-face-prisoner-s-dilemma-20230311-p5cr8x)The future for Silicon Valley Bank could one of two scenarios: a merger and recapitalisation or the start of a series of bank runs. [Silicon Valley Bank collapse: what we know](https://www.afr.com/companies/financial-services/silicon-valley-bank-collapse-what-we-know-20230311-p5cr8y)Nearly $US175 billion ($266 billion) in customer deposits have been put under the control of the US Federal Deposit Insurance Corp. [Start-ups pull money out of struggling Silicon Valley Bank](https://www.afr.com/technology/start-ups-pull-money-out-of-struggling-silicon-valley-bank-20230310-p5cr2u)At least 15 Australian companies – in sectors including payments and artificial intelligence – have withdrawn some or all of the money they had stored. Founded in 1983, Silicon Valley Bank grew alongside the tech industry, weathering the ups and downs inherent to the sector. I do have faith that we have the tools for this sector and for our regulators.” On Friday (Saturday AEDT), the bank’s glass-front and wood paneled two-storey building on Silicon Valley’s famous Sand Hill Road - known for housing venture capital funds that invest in start-ups - appeared empty. A sale to another bank, however, could come at a loss, in which case the FDIC may have to provide federal support to facilitate the sale. “Whether there is contagion and effects that follow onto other financial institutions is something regulators are incredibly focused on right now, because this is a traditional bank run. At the end of December, Silicon Valley Bank held about $US209 billion in total assets, making it the second-largest failure of a federally insured bank after Washington Mutual, which collapsed during the financial crisis in 2008. For now, many banking regulators are confident that the contagion will not spread to the financial sector more broadly. As the voting members of the FDIC received regular virtual briefings throughout the day on Thursday, regulators zeroed in on just how big the bank was, the people said. Silicon Valley Bank’s rapid failure shocked the tech industry, prompting fears that the economic situation for the sector is worse than previously thought.

Banking regulators take over and close Silicon Valley Bank in the biggest US bank failure since the global financial crisis.

The startup-focused lender had 17 branches in California and Massachusetts, the FDIC said. Shares of the bank were halted on Friday, after they tumbled 66 per cent in pre-market trading. - Shares of the bank were halted on Friday, after tumbling 66 per cent in pre-market trading

Global shares hit a two-month low on Friday as investors dumped banks on fears of contagion after a...

The benchmark 10-year JGB yield, which the BOJ pins within 50 basis points either side of zero, pulled back sharply from that ceiling to last sit at 0.445 per cent. Bitcoin was off 2.0 per cent at $US19,924 ($A30,236) as the fallout from the demise of Silvergate weighs on the broader mood in digital assets. The yen was last down about 0.4 per cent at 136.615 per dollar after a knee-jerk drop of as much as 0.6 per cent. Fed funds futures also rallied strongly, pulling the market-implied peak in US rates from above 5.6 per cent to just below 5.5 per cent, and pricing about a 50 per cent chance of a 50 basis point Fed increase this month, down from more than 70 per cent a day earlier. A reclassification of the US S&P index next week will increase the number of banks in the benchmark to support the sector, Spencer said. Silicon Valley Bank had sought on Thursday to reassure tech clients as its stock collapsed by 60 per cent while it was attempting to raise funds to plug a $US1.8 billion ($A2.7 billion) hole caused by the sale of a loss-making bond portfolio.

California's banking regulators shut down Silicon Valley Bank and put in into receivership under the Federal Deposit Insurance Corp. (FDIC). That effectively ...

Though the problems appear to be isolated at SVB, the run on the bank sparked concerns about the banking sector as a whole. "We do not believe there is a liquidity crunch facing the banking industry." The troubles at SVB come as Wall Street had already been on edge. "They really developed a niche that was the envy of the banking space," says Jared Shaw, a senior analyst at Wells Fargo. On Thursday, shares of all kinds of lenders, including the big banks, sagged. That led to a major slump in SVB's shares.

California: California banking regulators on Friday (California time) closed SVB Financial Group, the largest bank failure since the financial crisis, ...

Silvergate shares rebounded Friday to $3.04 after a sharp drop in the prior session. “But they just came out to tell us the bank is shut down.” The last FDIC-insured institution to close was Almena State Bank in Kansas, on October 23, 2020. Europe’s STOXX banking index fell almost 4 per cent, its biggest one-day slide in about a year. But banking shares were well off their lows on Friday. “If you’re all here and things are locked up, it’s very difficult to operate your company,” he said.

Silicon Valley Bank collapsed after a stunning 48 hours in which a bank run and a capital crisis led to the...

"The system is as well-capitalized and liquid as it has ever been," Zandi said. "Higher rates have also lowered the value of their treasury and other securities which SVB needed to pay depositors," Zandi said. "This is night and day versus the global financial crisis from 15 years ago," he told CNN's Julia Chatterly on Friday. Higher rates hit tech especially hard, undercutting the value of tech stocks and making it tough to raise funds, Moody's chief economist Mark Zandi said. The FDIC, an independent government agency that insures bank deposits and oversees financial institutions, said all insured depositors will have full access to their insured deposits by no later than Monday morning. The FDIC is acting as a receiver, which typically means it will liquidate the bank's assets to pay back its customers, including depositors and creditors.

US regulators have seized Silicon Valley Bank's assets, marking the largest failure of a financial institution since the height of the GFC.

Silicon Valley Bank had $209 billion in total assets at the time of failure, the FDIC said. The bank still appeared stable this year, but on Thursday it announced plans to raise up to $1.75 billion in order to strengthen its capital position. They rocketed lower again Friday before the open of the Nasdaq, where it is traded. “Our banking system is in a fundamentally different place than it was, you know, a decade ago,” said Cecilia Rouse, chair of the White House Council of Economic Advisers. That panic on Wall Street led to the demise of Lehman Brothers, a firm founded in 1847. The bank had deep ties to Silicon Valley industries and startups.