SVB Financial Group is in talks to sell itself after failed attempts to raise capital during a bank run, CNBC reports.
Major financial institutions are looking forward to a possible purchase of the company, CNBC said Friday.
SVB – which has insisted for months it won’t significantly restructure its balance sheet – stunned investors Wednesday when it said it would issue $2.25 billion in stock and post a $1.8 billion loss – Take dollars on sale of a majority of their available shares – Sell securities.
The Santa Clara-based firm took steps this week to raise capital after it was hit by losses in its securities portfolio and a slowdown in funding from venture capital firms it serves.
The stock, which plummeted 60% on Thursday, fell as much as 69% early Friday in New York before trading was halted. The company’s bonds hit record lows, leading to a broad sell-off in banking stocks around the world.
Source: LA Times
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
