Pulled down the banks.
Silicone Valley Bank (Photo: ShutterStock)
The collapse of the "high-tech bank", Silicone Valley Bank, continues today (Friday).
Since yesterday, the value of the American bank has fallen by 79%.
The severe blow suffered by the bank causes bank shares in the country to drop, the sharpest in almost three years.
After the bank's announcement of a $2.25 billion fundraising, venture capitalists advised the companies to withdraw their funds, which sent shares plunging further.
Just yesterday the shares of the bank, which finances many start-ups including dozens of Israeli start-ups, collapsed by 60%.
The crisis in the industry meant that many companies withdrew large sums from it following the contraction of the industry and the rise in interest rates, which resulted in the fall in the value of the bank.
Yesterday, the fall had a negative impact on the entire market, with the Nasdaq down more than two percent.
Bank shares plunged at relatively sharp rates - Bank of America lost more than 6 percent and likewise Wells Fargo.
JPMorgan Chase lost 5.4 percent and Citigroup shed more than four percent.
In total, the four largest banks lost about 50 billion dollars in value in one day.
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