Silicon Valley Bank shares suspended after failed bailout and other banks’ shares tumble

He Bank of Silicon Valley (SVB) failed in its attempt to raise capital and is in talks for saleaccording to the American media CNBC.

SVB shares fell again this Friday 60% in electronic activities before the opening of the Wall Street Stock Exchange, a fall which is added to that of yesterday and which weighs on the banking sector inside and outside the United States. The shares did not open for trading with the rest of the market at 9:30 a.m. and were still paralyzed.

The bank, mainly oriented towards emerging companies, particularly in the technological and scientific sector, was forced to carry out a forced sale of securities on Wednesday for a value of 21 billion dollarswhich meant some losses of 1,800 million and caused its shares to drop 60% on Wall Street.

In the United States, several financial institutions have been drawn into the SVB movement, such as Signature Bankthat yesterday fell one 12% and today he was left near the ten% in electronic activities prior to the opening of the prosecution, and Bank of the First Republicwhose shares depreciated yesterday 17% and this morning they fell 15%.

While other big companies like JPMorgan Chase felt the brunt of SVB’s slump yesterday with a 5% loss, this Friday before the opening there was only a 0.28%.

Similarly, shares of Goldman Sachs, which fell 2% yesterday, were down another 0.29% today ahead of the open.

Despite the stock market turmoil, some analysts have tried to play down the importance of the issue, claiming that the fall of Silicon Valley Bank is a particular problem that concerns only the said institution.

“The current pressures facing SVB are highly idiosyncratic and should not be viewed as extrapolating to other banks,” the analysts said. Manan Gosalia and Betsy Graseck in a note from Morgan Stanley, quoted by the chain CNBC.

(With information from EFE)

Continue reading: