After the announcement of the closure, the Dow Jones industrial index fell again for the fourth consecutive day -losing nearly 135 points-, the SP500 and Nasdaq indices (which combine the shares of the main technology companies) also reported losses on Wall Street .
What is BLS?
Silicon Valley bank (SVB) is a bank Californian technology specialist who does business primarily with funds that invest in unlisted companies.
Little known to the public, it is the sixteenth bank American by the size of its assets.
The group, which operates in the United States, Europe, Asia and Israel, offers financial services to start-ups, among others, from simple bank accounts to advice to capitalize.
SVB indicates on its website that it works with about 50% of technology companies.
What problems are you facing?
The matrix of this bankSVB Financial Group, announced Wednesday that it would try to raise $2.25 billion in fresh funds.
The group quickly sold a portfolio of 21,000 million dollars of financial titles, with an estimated loss of 1,800 million.
SVB seeks to strengthen its finances, weakened by customer withdrawals.
According to The Wall Street Journal, citing sources close to the banking sector, investment funds advised companies to withdraw their money from SVB and, in reaction, the CEO of the bank He urged his clients on Thursday “not to withdraw their deposits and not to spread fear or panic.”
But on Friday morning, the listing of SVB shares was suspended on the New York Stock Exchange pending a communication from the company, after a 60% drop in its titles on Thursday and a decline of more than 60 % again in pre-open electronic exchanges.
According to CNBC, the bank it was unable to obtain the necessary capital and is negotiating its sale to another bank.