Banking crisis in Silicon Valley threatens FinTech funding

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There is more attention being paid to liquidity in the banking industry just one day after Silvergate Capital announced it would close and liquidate its bank providing services to the crypto industry.

SVB Financial Group, the parent company of Silicon Valley Bank, sold off a portion of its holdings at a loss and raised USD 500 million to strengthen its financial position, which caused the company’s shares to drop 60% and another 18% in after-hours trading. The company will experience a USD 1.8 billion loss on the sale of its USD 21 billion in holdings and securities from the US Treasury.

SVB also announced that it had started an underwritten public offering in which it hoped to raise about USD 1.8 billion by selling common and preferred stock.

Read More: Silicon Valley Bank Crisis Threatens FinTech Funding

TalkFintech Bureau
TalkFintech Bureauhttps://talkfintech.com
TalkFintech is focused on the latest financial sector technologies and tools- covering all tech used by banks, investors, insurance, and wealth management sectors- and also conversations on retail financial management tools.

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