Shares of SVB Financial fall 60% as tech-focused bank looks to raise more cash
Publishing timestamp: 2023-03-09 16:02:04
Summary
SVB Financial's shares plunged by 60% after the company announced plans to raise over $2 billion in capital to offset losses on bond sales. The company has sold "substantially all" of its available-for-sale securities, resulting in a post-tax loss of $1.8 billion. The sale of securities is expected to be immediately accretive as the bank reshapes its balance sheet. SVB cited higher interest rates and "elevated cash burn from our clients" as reasons to raise new capital. The company is heavily involved with startup companies, and the decline comes shortly after cryptocurrency-focused bank Silvergate announced liquidation plans.
Sentiment: NEGATIVE
Tickers: SIVB,
Keywords: svb financial group, breaking news: markets, technology, markets, business news, financials, banks,