Tech Lender SVB’s Stock Halted After Premarket Selloff
Banks Lose Billions in Value After Tech Lender Stumbles
Silicon Valley Bank HALTS trading as shares crash 64% today amid talks to sell troubled lender: Panic caused by tech industry slowdown spreads to Wall Street – as Peter Thiel’s venture capital fund warns startups to PULL money out of SVB
- 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.
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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.
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