Regulator response
The collapse came after SVB said it was trying to raise $2.25bn (£1.9bn) to plug a loss caused by the sale of assets, mainly US government bonds, which had been affected by higher interest rates.
The news caused investors and customers to flee the bank. Shares saw their biggest one-day drop on record on Thursday, plunging more than 60% and fell further in after-hours sales before trading was halted.
On Thursday and early Friday, there was extensive selling of bank shares worldwide due to worries that other banks would experience similar issues.
US Treasury Secretary Janet Yellen said she was “very carefully” following “recent developments” at Silicon Valley Bank and other companies at a speech on Friday in Washington.
In a later meeting with senior banking regulators, she expressed “complete confidence in banking regulators to take appropriate actions in response and underlined that the financial system is robust,” according to the Treasury Department.
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