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Silicon Valley Bank meltdown sparks contagion fears: ‘We found our Enron’
mystery-ak:
Silicon Valley Bank meltdown sparks contagion fears: ‘We found our Enron’
By Ariel Zilber
March 10, 2023 8:49am
Fears of a broad financial contagion spread on Friday after tech lender Silicon Valley Bank set off alarm bells over liquidity concerns — sparking share losses across the banking sector worth some $52 billion on Thursday.
Peter Thiel’s venture capital firm Founders Firm advised clients to withdraw their deposits from Silicon Valley Bank — despite the fact the lender has been a mainstay for tech startups for decades, according to Bloomberg News.
Bill Ackman, the billionaire hedge fund manager, called on the US government to step in and bail out Silicon Valley Bank.
Michael Burry, the eccentric investor featured in the 2015 film “The Big Short,” warned: “It is possible today we found our Enron.”
Shares of Silicon Valley Bank’s parent company, SVB Financial Group, nosedived by 60% on Thursday evening, wiping out more than $80 billion from its market capitalization.
The company’s stock was down another 45% in pre-market trading on Friday — dragging down the share price of several other publicly traded banking giants.
more
https://nypost.com/2023/03/10/silicon-valley-bank-meltdown-sparks-contagion-fears/
mystery-ak:
Silicon Valley Bank is shut down by regulators, FDIC to protect insured deposits
Published Fri, Mar 10 202311:46 AM ESTUpdated 2 Min Ago
Jesse Pound
Greg Becker, the CEO of Silicon Valley Bank, tried to calm tech investors and startups during a Thursday Zoom call.
“My ask is to stay calm because that’s what is important,” Becker told listeners on the call. “We have been long-term supporters of you — the last thing we need you to do is panic.”
Shares of Signature Bank dropped by some 4% in pre-market trading while First Republic Bank, whose stock fell 17% on Thursday, was down another 3% before the opening bell on Friday.
Shares of JPMorgan Chase, which fell 5% on Thursday, dropped another 1% in pre-market trading on Friday.
more
https://nypost.com/2023/03/10/silicon-valley-bank-meltdown-sparks-contagion-fears/
Timber Rattler:
Update: https://www.cnbc.com/2023/03/10/silicon-valley-bank-is-shut-down-by-regulators-fdic-to-protect-insured-deposits.html?__source=iosappshare%7Ccom.apple.UIKit.activity.PostToTwitter
FDIC taken control and has shut it down until Monday to stop the run.
Kamaji:
--- Quote ---Michael Burry, the eccentric investor featured in the 2015 film “The Big Short,” warned: “It is possible today we found our Enron.”
--- End quote ---
Is he alleging massive accounting fraud at SVB?
mystery-ak:
Feds Take Over Silicon Valley Bank in Biggest Bank Failure Since 2007
Joe Cunningham
Silicon Valley Bank (SBV), a financial institution that focused primarily on investing in tech start-ups, has been taken over and shut down by federal regulators in one of biggest financial failures in history, and the biggest since the Global Financial Crisis over a decade ago.
The collapse of the bank comes as the tech industry has lost a lot of profitability in recent months. Major tech firms are slashing jobs, and new start-ups are dwindling.
The stunning downfall of the bank, once a darling of the financial world, comes after it raced to find a buyer following a major reported loss, according to the Wall Street Journal.
https://redstate.com/joesquire/2023/03/10/feds-take-over-silicon-valley-bank-in-biggest-bank-failure-since-2007-n714598
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