Bank stocks plunge after implosions at Silicon Valley Bank and Silvergate

  • 📰 BusinessInsider
  • ⏱ Reading Time:
  • 41 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 20%
  • Publisher: 51%

United States News News

Bank stocks plunge after implosions at Silicon Valley Bank and Silvergate Capital send 'shock waves' through the sector

. The KBW Bank Index fell 7.7%, its biggest decline since June 2020.

The implosion at SVB Financial happened after the company lowered its guidance, announced a $2.3 billion capital raise, andthat it bought when interest rates were near record lows. The multi-pronged announcement caught investors by surprise. "Part of the problem is Silicon Valley [Bank] had been telling investors up until a couple weeks ago that their guidance was intact. There was no reason to believe this announcement was going to hit," Keefe, Bruyette & Woods' head of equity trading RJ Grant told Insider on Thursday.

"It's a little bit unnerving on a couple different levels: one at the micro level with their management, and two at the macro level, like if they weren't being dishonest, this [negative] deposit flows happened very suddenly," Grant said.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 729. in US

United States United States Latest News, United States United States Headlines