Regional Bank Stocks Halted, Amid Selloff!
Several regional bank stocks were halted Friday morning amid a market selloff led by SVB Financial Group, owner of startup-focused Silicon Valley Bank.
First Republic Bank, PacWest Bancorp, Western Alliance Bancorp, and Signature Bank were all halted for volatility after sharp declines in early trading.
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Shares of SVB Financial (SIVB), were halted early Friday amid reports the company's efforts to raise capital had failed with the company now seeking a buyer#SVBBank #markets pic.twitter.com/GzcH6afWVj
— The_Journalbiz (@the_journalbiz) March 10, 2023
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First Republic had fallen by as much as 50%. PacWest and Western Alliance had slid more than 30%. The signature was down by about 25%.
SVB Financial said it would sell securities at a nearly $2 billion loss on Wednesday in the face of larger-than-expected deposit outflows. Its stock, which was halted early Friday, has fallen by about 81% since then. The company is seeking a buyer after scrapping its plan to shore up its finances through a capital raise, the Journal reported Friday.
The events have left investors wary of unrealized losses that have piled up at banks since a deposit surge in the pandemic, which led many to take big positions in bonds that have since dropped in value.
The KBW Index declined more than 6%. It was on pace for its worst week in nearly three years.
Among the biggest banks, JPMorgan rose 1%, while Citigroup and Morgan Stanley were down about 1.5%. Bank of America and Wells Fargo lost nearly 2%
