Details of SVB’s failed response to the prospect of the downgrade, reported by Reuters for the first time, show how quickly confidence in financial institutions can erode. The failure also sent shockwaves through California’s startup economy, with many companiesThe Moody’s call came after the value of the bonds where SVB had parked its money fell due to the higher interest rates.
The transaction would generate a loss, but if SVB could fill that funding hole by selling shares, it would avoid a multi-notch downgrade, the sources said.News of the share sale spooked clients, primarily technology startups, that rushed to withdraw their deposits, upending the capital raising. Regulators stepped in on Friday, shutting down the bank and putting it in receivership.The unraveling
Ideally, the stock sale would have been completed before the market opened on Thursday, March 9, to avoid the sale being jeopardized by any declines in SVB’s shares once news of the sale got out. But the sources said that was not an option given the tight schedule. Then news came of venture capital firms advising startups they had invested in to pull money out of Silicon Valley Bank for fear of an imminent bank run.
Source: Entertainment Trends (entertainmenttrends.net)
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: gmanews - 🏆 11. / 68 Read more »
Source: CNN Philippines - 🏆 13. / 63 Read more »
Source: inquirerdotnet - 🏆 3. / 86 Read more »
Source: rapplerdotcom - 🏆 4. / 86 Read more »
Source: rapplerdotcom - 🏆 4. / 86 Read more »
Source: rapplerdotcom - 🏆 4. / 86 Read more »