The financial losses of American Silicon Valley Bank (SVB), a lender to tech startups, have plunged the market value of four of the largest US financial institutions – JPMorgan Chase, Bank of America, Citigroup and Wells Fargo. These banks had to sell their own shares, and as a result, they lost more than $52 billion in market value in one day. informs Financial Times newspaper.
On March 8, SVB reported a loss of approximately $1.8 billion after the sale of its securities portfolio totaling $21 billion. As a result, the losses caused the bank to announce the sale of shares to strengthen its own capital.
“On Thursday, investors lost $52.4 billion in the market value of assets of the four largest U.S. banks amid widespread sell-off in financial equities. Sales at JPMorgan Chase, Bank of America, Citigroup and Wells Fargo were seen fueled by difficulties at Silicon Valley Bank (SVB), a small, tech-focused lender.
January 22 The Wall Street Journal knowledgeableThe largest US crypto banks have borrowed over $13 billion from federal financial institutions by the end of 2022. This was done to compensate for the losses due to the loss of customers. Among these borrowers were Silvergate Capital and Signature Bank.