SVB sinks wiping $61B in market value off bank stocks

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Silicon Valley Bank lost over half its value after investors bailed on the shares following plans for a large capital raise.

Payne Capital Management President Ryan Payne shares his outlook on stocks and bonds, as well as the state of the crypto industry following Federal Reserve Chairman Powell's testimony before Congress.

Jittery investors got another scare on Thursday after Silicon Valley Bank announced plans for $1.75 billion in common stock and depository shares. SVB shares lost 60.4%, the largest percentage drop since 1998, which wiped out over $9.5 billion in market value as investors speculated on the financial health of

which caters to the "world’s most innovative companies", as well as "fast-growing clients" according to its own description. "While VC deployment has tracked our expectations, client cash burn has remained elevated and increased further in February, resulting in lower deposits than forecasted.

"While VC deployment has tracked our expectations, client cash burn has remained elevated and increased further in February, resulting in lower deposits than forecasted. The related shift in our funding mix to more, higher-cost deposits and short-term borrowings, coupled with higher interest rates, continues to pressure NII and NIM.

 

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Will be interested to see if those deposits in excess of FDIC max are covered anyhow. Lots of Democrat money in The Valley.

Hey, FoxNews can you post good news at least 50% of the time? doom news America FoxNews American

Let’s Go Brandon!

Good job as the day crypto is going down

Rhu-Rho!!!

Here we go.

Phase 6

😲😲😲😲

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Silicon Valley Bank's struggles spell further trouble for beleaguered tech startup marketSilicon Valley Bank's crisis is due to the challenges faced by its clients, though the problems could now get worse. Bailout season begins! SIVB IBs played high with Founders and start-ups, then lost it all investing in paper. Hubris.
Source: CNBC - 🏆 12. / 72 Read more »