With the concerns of companies affected by the decline in Silicon Valley Bank‘s shares, SVB’s value decreased by 60% with the second move.
Worry and pressure from companies that have money in the bank, as well as the fear that SVB will incur heavier losses, put the entire banking sector under pressure once again.
Greg Becker, CEO of SVB, made a phone call Thursday afternoon to allay his customers’ fears. However, this meeting did not relieve the market.

Concern among founders and venture capital investors said Silicon Valley Bank should raise $2.25 billion in stock on Wednesday. The bank said it had to sell all of its available-for-sale bonds at a loss of $1.8 billion because customers withdrew their deposits.
This news comes just after the collapse of crypto-focused Silvergate.
The bank sparked another wave of deposit withdrawals on Thursday as VCs ordered portfolio companies to move funds to keep client startups in trouble.
SVB CEO Becker’s call to “keep calm” was also not answered, and the bank failed to gain confidence. As a result, the shares continued to fall at the same rate and the loss reached 60%.
Growing pressure on the SVB needs hedge fund billionaire Bill Ackman and the support of private investors. If the SVB fails to help boost confidence, it will speculate that the next government might be a bailout.
In this process, entrepreneurs and investors who have money in the bank are anxiously waiting for what will happen.
You can get an idea by looking at CNBC’s detailed news and expert opinions on this subject.
Silicon Valley Bank drops another 60% and is halted, as pressure mounts on banking sector
What OpenAI Said About It
Silicon Valley Bank’s Plunge explained to a 5 year old:
-Silicon Valley Bank is a big bank where people put their money in to keep it safe.
-The bank wanted to make more money by giving loans, but couldn’t find enough people to lend to.
Instead, the bank bought promises called mortgage backed securities, thinking they would make a lot of money from them.
-But the people in charge of the money in the country made it very easy for people to borrow money for a long time, so the value of the promises the bank bought went down a lot and they lost a lot of money.
-Now the bank needs to find more money to fix the problem, and some people are worried and talking about it a lot, which is making things worse.