European banking stocks sink as Silicon Valley Bank jitters spread
Publishing timestamp: 2023-03-10 11:35:35
Summary
European banking stocks sold off sharply due to jitters surrounding SVB Financial, a tech-focused lender that plunged 60% on Thursday and announced a capital raise to offset bond sale losses. SVB is heavily focused on startup firms, particularly venture-backed tech and life sciences companies in the US. The company was forced into a fire sale of its securities, dumping $21 billion worth of holdings at a $1.8 billion loss while raising $500 million from venture firm General Atlantic. Billionaire investor Bill Ackman warned that if SVB fails, it could "destroy an important long-term driver of the economy as VC-backed companies rely on SVB for loans and holding their operating cash." The situation is a reminder that many institutions are sitting on large unrealised losses on their fixed-income holdings.
Sentiment: NEGATIVE
Tickers: CBK-DE, DBK-FF, SAN, SIVB, HSBA-GB, BAC, GLE-FR, INGA-NL, HSBC, SAN-ES,
Keywords: deutsche bank ag, hsbc holdings plc, ing groep nv, societe generale sa, breaking news: europe, bank of america corp, banco santander sa, commerzbank ag, wall street, united states, markets, business news, svb financial group, banks,