By Friday morning, SVB’s shares were halted and it had abandoned efforts to quickly raise capital or find a buyer. The company’s stock cratered on Thursday, dragging other banks down with it.
That triggered a panic among key venture capital firms, who reportedly advised companies to withdraw their money from the bank. The wheels started to come off on Wednesday, when SVB announced it had sold a bunch of securities at a loss and that it would sell $2.25 billion in new shares to shore up its balance sheet. The bank, previously owned by SVB Financial Group, didn’t respond to CNN’s request for comment. It said it would pay uninsured depositors an “advance dividend within the next week.” The FDIC, an independent government agency that insures bank deposits and oversees financial institutions, said all insured depositors will have full access to their insured deposits by no later than Monday morning. Here's why things are different this time Silicon Valley Bank collapse has echoes of 2008. SVB Financial Group shares extended their plunge before being halted in premarket trading for pending news as prominent venture capitalists recommended companies withdraw their money from the lender, sparking further worries over its financial health and liquidity in the wider banking sector. An SVB Financial Group chart displayed on the floor of the New York Stock Exchange in New York, US, on Friday, March 10, 2023.