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Shock in Silicon Valley over the collapse of a bank that lends to technology companies

2023-03-10T14:52:55.571Z


The entity was unable to carry out a capital increase and suffered the withdrawal of deposits. Its fall hit the financial sector.


The electronic trading of the shares of the

US bank SVB

was suspended this Friday, the Nasdaq stock market announced, pending a communication from the firm, amid the

turmoil

unleashed on Wednesday after the announcement of an

emergency capital increase, which ultimately failed.

The entity, as reported by CNBC, would be looking for a buyer.

Silicon

Valley Bank

(SVB)

fell more than 60%

on Thursday as investors worried about

large customer withdrawals

, prompting the bank to raise capital to boost liquidity and

sell a massive portfolio. of financial values.

The bank's shares plummeted another 60% this Friday in electronic activities prior to the opening of the Stock Market, a fall that is weighing on the banking sector inside and outside the United States.

The bank,

mainly focused on start-ups,

especially in the

technology and science sectors,

was forced to carry out a

forced sale

of securities on Wednesday

worth US$ 21,000 million,

which entailed losses of US$ 1,800 million and resulted in a 60% drop in their shares.

In the United States, several financial institutions were dragged by the movement of SVB, such as Signature Bank, which fell 12% on Thursday and this Friday close to 10% in the premarket, and First Republic Bank, whose shares depreciated 17%. and 15%, respectively.

Although other large corporations such as JPMorgan Chase felt the weight of the fall of the SVB on Thursday with a loss of 5%, this Friday, before the opening, its shares lost only 0.28.

Similarly, Goldman Sachs shares, which had fallen 2%, lost 0.29%.

Despite the stock market commotion, some analysts assured that the fall of Silicon Valley Bank is a particular matter that concerns only said institution.

"The current pressures facing SVB should not be seen as an extrapolation to other banks," analysts Manan Gosalia and Betsy Graseck said in a Morgan Stanley note, quoted by CNBC.

With information from EFE

NE


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