'Based on the information that has been made public, the bank unwisely put its eggs in one basket by taking deposits from an insular group of depositors: venture-funded startups.' Column by hiltzikm:
As for the biggest banks, if they’re “rattled” it’s at a pretty low volume. As I write, shares of JPMorgan Chase are up 2.5%, Wells Fargo is up 1.34%, and Bank of America and Citigroup are basically flat in midday trading on the New York Stock Exchange.Based on the information that has been made public, the bank unwisely put its eggs in one basket by taking deposits from an insular group of depositors: venture-funded startups.
In the interim, however, the value of those securities falls as interest rates rise . If you have to sell too early, you can take a bath. That’s the fundamental Silicon Valley Bank story. At its last quoted price Thursday on Nasdaq its market value was less than $6.3 billion, and by Friday was effectively zero.
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