It’s another dismal day for Bay Area banking, as fallout from the Silicon Valley Bank crisis continued to spread.
A day after announcing a $30 billion rescue package from major banks, shares of San Francisco's First Republic Bank crashed more than 20% Friday as the rescue package failed to assuage jittery investors.
William Kosturos, SVB Financial’s chief restructuring officer, said the bankruptcy process will enable the company “to preserve value as it evaluates strategic alternatives for its prized businesses and assets, especially SVB Capital and SVB Securities," which are not included in the bankruptcy filing.
SVB collapsed last week after announcing that it was posting a loss and raising more capital, news that triggered a bank run, as technology startups rushed to withdraw their funds. The 40-year-old bank had played a critical role as the go-to for new and emerging companies in the tech industry.The SVB collapse sparked worries about other regional banks, including First Republic Bank, whose share took a hit last week.
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