Following the precipitous fall of Silicon Valley Bank this morning, when its shares plunged more than 60 percent before market trading, the state of California, through the US Department of Financial Innovation and Protection, ordered the end of the operations of the financial institution, while guaranteeing that the savings will be available on Monday, March 13.
The announcement has caused the financial sector to worry, as Silicon Valley Bank ?SVB? specialized in the technology sector with businesses that were primarily supplied by funds that invest in unlisted companies.
It should be noted that the Federal Deposit Insurance Corporation guaranteed that the savings will be available "no later than this Monday morning", words with which it called for the calm of the clients.
According to the media CNBC, the entity failed in its attempt to raise capital and is in talks to sell it.
Thus, the shares, which fell as much as 69 percent before Wall Street began trading, plummeted after the Santa Clara, California-based bank holding company issued $2.25 billion worth of shares last Wednesday. to strengthen your capital position after a significant loss in your investment portfolio.
According to specialized media, the coup triggered a sharp run by US lenders, who posted the biggest drop on Thursday in almost three years and extended losses in pre-trade operations on the US stock market on Friday.
The situation has meant that the main indices of the New York Stock Exchange are registering losses, such is the case of Nasdaq, which is characterized by comprising high-tech companies in electronics, information technology, telecommunications, and biotechnology, which up to now is the most affected. This followed by the Dow Jones and S&P.
Several financial institutions have been dragged by the movement of SVB, such as Signature Bank, which fell 12 percent yesterday and today was left close to 10 percent in electronic activities prior to the opening of the trading floor, and First Republic Bank, whose shares depreciated 17 percent yesterday and fell 15 percent this morning.
With information from Bloomberg and EFE.
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