The collapse of Silicon Valley Bank (SVB) continues to wreak havoc on the global financial system, but the man most affected by the bankruptcy of this bank has lost $2.9 billion: the famous investor charles schwab.
According to a report from Financial Timesthe 85-year-old investor’s personal wealth has been cut by almost $3 billion since March 8, when panic began over the problems of the bank specializing in startups.
This is the steepest drop since it appeared on the Billionaires Index Bloomberg a decade ago. In other words, Charles Schwab’s net worth has declined more than any other American billionaire this year. Now he has “barely” 10 billion dollars left.
With this drop, the investor becomes the 183rd person. richest in the world Most of Charles Schwab’s fortune is tied to his 6% stake in his namesake investment brokerage that he founded in 1971.
How did Silicon Valley Bank hit Charles Schwab?
Charles Schwab Corp. was affected by the wave of panic from clients who began to withdraw their funds from financial institutions due to the failure of Silicon Valley Bank.
Schwab’s brokerage shares lost 32% of their value last Wednesday and then an extra 12% on Monday as US government regulators assess which institutions might be at risk from the forces that brought down SVB.
Like the California bank that blew up on Friday, March 10, Schwab owns a large portfolio of investment securities. Unlike Silicon Valley Bank, however, most of Schwab’s customer deposits are insured.
The loss of 23% of Schwab’s fortune in a matter of six days has raised red flags among billionaires, because the US financial industry is often one of the most stable on the planet.
Silicon Valley Bank, a bank focused on loans to startups, was closed by the US government due to lack of liquidity and to secure the money of its clients. This triggered a wave of panic that also led to the closure of a crypto-focused bank, Silvergate Capital, due to bank runs (users were taking their money out in large quantities).
Editorial Team The editorial team of EMPRENDEDOR.com, which for more than 27 years has worked to promote entrepreneurship.