US bank woes? Silicon Valley Bank stocks plunge 1 day after Silvergate downfall

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Investors are seemingly spooked by banks lately, as the tech-startup-focused Silicon Valley Bank saw its shares take a sharp downturn just a day after the closure of crypto bank Silvergate.

from The Information, SVB chief, Greg Becker, told investors to “stay calm” and said the bank has “ample liquidity to support our clients with one exception: If everyone is telling each other SVB is in trouble, that would be a challenge.”Becker reaffirmed the bank was “well-capitalized” and had “one of the lowest loan-to-deposit ratios of any bank of our size” and expected to reinvest the capital from the sale into “more asset-sensitive, short-term” securities.

On Twitter, founders and tech executives however aired their support for the bank and urged others not to panic.on Mar. 9 that “more in the VC community need to speak out publicly to quell the panic about [SVB].” 3/ I believe the biggest risk to startups AND VCs would be a mass panic. Classic "runs on the bank" hurt our entire system. People are making public jokes about this. It's not a joke, this is serious stuff. Please treat it as such“I believe they could only fail if everybody panics so I would urge calm decisions based on facts,” he added.

Reacting to the news, Zak Kukoff, principal at VC firm General Catalyst said the bank had “consistently gone out of their way” for startups and said, “now is the right time to support them.” I will say - SVB has consistently gone out of their way to do the right thing for startups and for the ecosystem. Now is the right time to support them

 

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