- It will be a busy week for investors following the fallout from the Silicon Valley Bank (NASDAQ:SIVB) collapse
- The bank’s customers will be given access to their funds after the Federal Deposit Insurance Corp. seized the institution on Friday
- SVB’s stock tumbled $161.79, or more than 60 per cent, causing multiple trading halts due to extreme volatility, before closing at $106.04 per share
- Depositors withdrew billions of dollars from the bank in a matter of hours on Friday, forcing U.S. banking regulators to hastily close its operations
It will be a busy week for investors following the fallout from the Silicon Valley Bank (NASDAQ:SIVB) collapse.
The bank’s customers will be given access to their funds after the Federal Deposit Insurance Corp. (FDIC) seized the institution on Friday.
The crash pushed shockwaves through financial shares, driving the major U.S. averages down more than 4 per cent for the week. The NASDAQ endured the steepest decline of 5 per cent. The NASDAQ Stock Market (NASDAQ: NDAQ) halted trading for SIVB on Friday. Facing the possibility of more bank runs imminently, Washington officials have announced they are guaranteeing all deposits as bank stocks continue to struggle in Monday trading.
SVB’s stock tumbled $161.79, or more than 60 per cent, causing multiple trading halts due to extreme volatility before closing at $106.04 per share. SVB stock losses didn’t stop there, and it continued to fall by as much as 28 per cent in after-hours trading.
Depositors withdrew billions of dollars from the bank in a matter of hours on Friday, forcing U.S. banking regulators to hastily close its operations. This was the second-largest bank failure in history, behind the collapse of Washington Mutual at the height of the 2008 financial crisis. Its failure has caused more than $150 billion in deposits to be now locked up in receivership. Bitcoin fell below the $20,000 level on Friday after the collapse.
The 16th-largest bank in the U.S., Silicon Valley Bank mainly served technology startup companies, venture capital firms, and highly paid tech workers.
Investigators from the likes of Frank R. Cruz law offices to Bragar Eagel & Squire are pursuing SVB on behalf of investors over concerns about whether the bank had violated federal securities laws and/or engaged in other unlawful business practices.
On Monday, the bank announced several drastic restructuring initiatives.
