Silicon Valley Bank shares suspended after bailout plan failed and shares of other banks fall

Photo illustration of the SVB (Silicon Valley Bank) logo seen through shattered glass. March 10, 2023. REUTERS/Dado Ruvic (Dado Ruvic/)

He Silicon Valley Bank (SVB) has failed in its attempt to raise capital and is in talks for saleaccording to the American media CNBC.

The shares of the SVB have plummeted this Friday another 60% in the electronic activities prior to the opening of the Wall Street Stock Exchange, a fall that is added to the one experienced yesterday and that is weighing down the banking sector inside and outside the United States. The shares did not open for trading with the rest of the market at 9:30 in the morning and were still paralyzed.

The bank, mainly focused on emerging companies, especially in the technological and scientific sector, was forced to carry out a forced sale of titles on Wednesday for a value of 21,000 million dollarswhich meant some losses of 1,800 million and resulted in a 60% drop in its shares on Wall Street.

In the United States, several financial institutions have been swept up in the SVB movement, such as SignatureBankthat yesterday fell a 12% and today it was left near the 10% in the electronic activities prior to the opening of the parquet, and First Republic Bankwhose shares depreciated yesterday a 17% and this morning they fell a fifteen%.

Silicon Valley Bank logo pictured on March 10, 2023. REUTERS/Dado Ruvic/Illustration/File
Silicon Valley Bank logo photographed on March 10, 2023. REUTERS/Dado Ruvic/Illustration/File (DADO RUVIC/)

Although other large corporations such as JPMorgan Chase felt the weight of the fall of the SVB yesterday with a loss of 5%, this Friday, before the opening, their shares were left only a 0.28%.

Similarly, Goldman Sachs shares, which fell 2% yesterday, lost another 0.29% today before the open.

Despite the stock market commotion, some analysts have wanted to downplay the issue by assuring that the fall of Silicon Valley Bank is a particular issue that pertains only to said institution.

“The current pressures facing SVB are highly idiosyncratic and should not be seen as extrapolating to other banks,” the analysts said. Manan Gosalia and Betsy Graseck in a note from Morgan Stanley, quoted by the channel CNBC.

(With information from EFE)

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