Tech Lender SVB’s Stock Halted After Premarket Selloff
Banks Lose Billions in Value After Tech Lender Stumbles
- Silicon Valley Bank suspended trading of its shares, with a potential sale in discussion.
- The bank appeared to be on the brink of ruin, as shares dropped by 64% in premarket trading.
- Founders Fund and Y Combinator advised startups to pull their money from SVB amid concerns about its financial stability.
- The bank caters primarily to tech startups and venture funds in Silicon Valley.
- SVB announced a massive equity raise to cover a $1.8 billion loss on the sale of bonds, but this did not calm investors.
- The situation raised fears of broader market contagion, with the S&P 500 bank index tumbling over 6%.
- Billionaire hedge funder Bill Ackman led calls for a government bailout for troubled SVB.
- Rising interest rates battered the tech startups that SVB primarily serves, resulting in declining deposits.
- SVB CEO Greg Becker insisted the bank remains ‘well-capitalized, with a high-quality, liquid balance sheet and peer-leading capital ratios.’
- Turmoil at SVB followed Federal Reserve Chair Jerome Powell’s testimony this week.
Saudi Arabia, Iran Restore Relations in Deal Brokered by China
DeSantis Heads to Iowa, Where Some Republicans Seek Trump Alternative
Ron DeSantis is the current Governor of Florida, and some of his notable accomplishments include:
- Handling the COVID-19 Pandemic: Governor DeSantis implemented policies to protect the most vulnerable Floridians while keeping businesses open, resulting in a lower death rate than many other states.
- Education Reform: DeSantis has pushed for an overhaul of Florida’s education system, including increasing teacher pay, expanding school choice options, and providing more funding for vocational and technical education.
- Criminal Justice Reform: DeSantis signed a criminal justice reform bill that expands alternatives to incarceration, provides job training for prisoners, and gives judges more discretion in sentencing.
- Environmental Protection: DeSantis signed an executive order to establish the Office of Resilience and Coastal Protection to help protect Florida’s coasts and natural resources from environmental threats.
- Veteran Support: DeSantis has made it a priority to support veterans, including signing legislation to provide additional benefits and resources for military members and their families.
- Business and Economic Development: DeSantis has prioritized job creation and economic growth, including cutting taxes, reducing regulation, and investing in infrastructure and workforce development.
- Election Integrity: DeSantis has signed into law a bill that increases election integrity in Florida, including requiring voter ID for voting by mail and prohibiting ballot harvesting.
