Post by icemandios on Mar 10, 2023 14:27:42 GMT
Silicon Valley Bank Crashes 65%, Halted 'News Pending'
Tyler Durden's Photo
BY TYLER DURDEN
FRIDAY, MAR 10, 2023 - 08:40 AM
Trading in Silicon Valley Bank shares has been halted for news pending after they plunged another 65% overnight after numerous icon VCs recommended clients pull cash from the struggling regional bank...
Perhaps more problematically, SVB's bonds (1.8s of 2031) are collapsing...
SVB Financial Group Chief Executive Officer Greg Becker held a conference call on Thursday advising clients of SVB-owned Silicon Valley Bank to “stay calm” amid concern about the bank’s financial position, according to a person familiar with the matter.
But a large number of VCs have suggested pulling cash sooner rather than later.
“This is a classic bank run, and when the bank run starts you don’t want to be the last guy there,” Ava Labs President John Wu said in an interview with Bloomberg Television.
However, some VCs said they were standing by the bank.
“It is truly unfortunate that several GPs and companies are making a tough situation for SVB worse by pressing the panic button,” said G Squared founder Larry Aschebrook.
“SVB has supported entrepreneurs and GPs at all stages of their businesses and that partnership should run both ways.”
“We’ll have to see how this story develops but something always breaks hard during or after a Fed hiking cycle,” said Jim Reid, a strategist at Deutsche Bank AG.
“Is this another mini wobble on this front or the start of something bigger?”
The Treasury Department is monitoring Silicon Valley Bank “very carefully,” White House Economic Advisor Bharat Ramamurti tells CNBC.
“I don’t want to say more than that right now, but I want to assure the viewers that this is something we are on top of,” he says, while adding that this is a “highly fluid situation”
Developing...
[From 267.83 on 3/8 to 39.40 after market close 3/9 is a "mini-wobble?]
Tyler Durden's Photo
BY TYLER DURDEN
FRIDAY, MAR 10, 2023 - 08:40 AM
Trading in Silicon Valley Bank shares has been halted for news pending after they plunged another 65% overnight after numerous icon VCs recommended clients pull cash from the struggling regional bank...
Perhaps more problematically, SVB's bonds (1.8s of 2031) are collapsing...
SVB Financial Group Chief Executive Officer Greg Becker held a conference call on Thursday advising clients of SVB-owned Silicon Valley Bank to “stay calm” amid concern about the bank’s financial position, according to a person familiar with the matter.
But a large number of VCs have suggested pulling cash sooner rather than later.
“This is a classic bank run, and when the bank run starts you don’t want to be the last guy there,” Ava Labs President John Wu said in an interview with Bloomberg Television.
However, some VCs said they were standing by the bank.
“It is truly unfortunate that several GPs and companies are making a tough situation for SVB worse by pressing the panic button,” said G Squared founder Larry Aschebrook.
“SVB has supported entrepreneurs and GPs at all stages of their businesses and that partnership should run both ways.”
“We’ll have to see how this story develops but something always breaks hard during or after a Fed hiking cycle,” said Jim Reid, a strategist at Deutsche Bank AG.
“Is this another mini wobble on this front or the start of something bigger?”
The Treasury Department is monitoring Silicon Valley Bank “very carefully,” White House Economic Advisor Bharat Ramamurti tells CNBC.
“I don’t want to say more than that right now, but I want to assure the viewers that this is something we are on top of,” he says, while adding that this is a “highly fluid situation”
Developing...
[From 267.83 on 3/8 to 39.40 after market close 3/9 is a "mini-wobble?]