Banks Lose Billions in Value After Tech Lender SVB Stumbles
Greg Becker, chief executive of SVB, tried to reassure venture capitalists and other clients in the tech sector.Photo: Lauren Justice/Bloomberg News
Investors dumped shares of SVB Financial Group and a swath of U.S. banks after the tech-focused lender said it lost nearly $2 billion selling assets following a larger-than-expected decline in deposits.
The four biggest U.S. banks lost $52 billion in market value Thursday. The KBW Nasdaq Bank Index notched its biggest decline since the pandemic roiled the markets nearly three years ago. Shares of SVB, the parent of Silicon Valley Bank, fell more than 60% after it disclosed the loss and sought to raise $2.25 billion in fresh capital by selling new shares.
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