SVB in talks to sell itself as crisis wreaks havoc on global banking | – #SVB #talks #sell #crisis #wreaks #havoc #global #banking
10 March (Reuters) – SVB Financial Group’s ( SIVB.O ) fundraising efforts have been unsuccessful and troubled bank was in talks to sell itself, CNBC reported Friday that the crisis at the tech-heavy lender is rippling through global markets and bank shot its shares.
Shares of SVB Financial Group ( SIVB.O ) were halted on Friday after plunging 66% in premarket trade.
SVB, which operates as Silicon Valley Bank, was not immediately available for comment.
The brutality in the lender’s shares that started on Thursday is another USA and Europe banks, as the episode raised concerns about hidden risks in the sector and its vulnerability to rising currency prices.
S&P 500 bank index (.SPXBK) fell 6.6% on Thursday and was poised to open lower again on Friday.
Europe’s STOXX bank index (.SX7P) fell more than 4%, set for its biggest one-day slide since early June, with most major lenders including HSBC ( HSBA.L ) down 4.5% and Deutsche Bank ( DBKGn declines .DE), down 7.9%.
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The crisis at SVB hit tech startups big earlier this week credit of the issuing bank, mainly USA After selling his portfolio of Treasuries at a loss, he began selling stocks to shore up his balance sheet. Sources familiar with the situation said on Thursday that some startup founders were advised to withdraw their money from SVB as a precaution.
The crisis has highlighted the fact that rapidly rising interest rates are driving down the price of such bonds, feeding investor concerns that other banks may also be vulnerable. Earlier this month, the Federal Deposit Insurance Corp. said U.S. banks will have a total of about 620 billion dollars said that he was facing an unrealized loss.
But banking experts said SVB’s problems were unique and concerns about the wider sector were unfounded.
Mark Haefele, Chief Investment Officer at UBS Global Wealth Management, wrote in a note: “The market’s reaction to this risk event appears to be overblown. However, rising costs of deposits and possible withdrawal of deposits may put pressure on the sector’s revenues.
Written by John O’Donnell, Noor Zainab Hussain and Paritosh Bansal; Additional reporting by Niket Nishant, Joe Mason, Marc Jones, Iain Withers and Yörük Bakhçali; Edited by Elisa Martinuzzi and Toby Chopra
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2023-03-10 18:34:14
Source – reuters
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