The bank’s stock came under severe pressure and experienced the worst trading day in its history.
(Photo: Reuters)
Frankfurt The sudden capital need at California start-up financier Silicon Valley Bank (SVB) has led to the biggest sell-off in bank stocks in three years. The SVB needs a multi-billion dollar capital increase to cushion losses from the portfolio.
But the crisis is not only affecting the financial sector, but the entire capital market around the world. How dangerous can the turbulence still be? The most important questions and answers:
What happened?
Shares in SVB, which specializes in financing start-ups, suffered a record daily loss on Wall Street on Thursday, down a good 60 percent, wiping out a market value of around $80 billion. The sell-off continued after the market closed, the share fell until Friday and was quoted at just under $40 before the start of trading in the USA – on Wednesday afternoon an SBV share had cost $267.
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