On Friday morning, Silicon Valley Bank crumbled following a shocking 48-hour period during which it sparked concerns of a potential banking industry crisis.
The regulators in California have designated the Federal Deposit Insurance Corporation as the receiver, CNN reported.
According to reports, SVB Financial Group was considering a sale following the sale of billions of dollars’ worth of assets to reimburse its clients, which triggered a wave of panic on Wall Street during the current week.
Various media sources, citing insiders, have disclosed that the struggling bank is contemplating a prospective acquisition by a bigger financial organization, as reported by CNN.
SVB (SIVB) shares were halted on Friday morning following a premarket decline of over 60%. On Thursday, the stock plunged by the same percentage after the bank announced that it had to sell a portfolio of US Treasuries and $1.75 billion worth of shares at a loss to compensate for swiftly decreasing customer deposits, effectively experiencing a bank run.
Written by staff