Banking Stocks Sink on SVB Concerns: What's Happening?
Shane Neagle | Mar 11, 2023 03:07
The banking sector experienced a massive sell-off on Thursday after the Silicon Valley Bank (NASDAQ:SIVB) stock plummeted 60%, following the share sale announcement and Silvergate Bank’s (NYSE:SI) decision to close down operations.
The S&P 500 bank index saw its steepest one-day drop in more than two years on the day, sliding over 6.5%.
After its stock collapse wiped out over $80 billion in value from bank shares, SVB continued to decline on Friday by an additional 41%. The unprecedented drop took SIVB to double digits, with the stock opening below $60 per share on Friday. A year ago, the stock was trading near $600 per share.
CNBC reported on Friday that the bank is now in talks to sell itself after failing to raise funds. Accordingly, big financial players are looking at a potential purchase of SVB.
Why Is SVB Collapsing?/h2
The collapse came after the bank Five Minute Finance , for weekly analysis of the biggest trends in finance and technology.
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