Financial Digest

Shares of SVB Financial fall more than 50% as tech-focused bank looks to raise more cash

  • 📰 CNBC
  • ⏱ Reading Time:
  • 26 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 14%
  • Publisher: 72%

Finance Finance Headlines News

Finance Finance Latest News,Finance Finance Headlines

Trading in the stock was halted for volatility multiple times during the session after SVB announced plans to raise more than $2 billion of new capital.

from CEO Greg Becker on Wednesday that it has sold "substantially all" of its available for sale securities, and was looking to raise $2.25 billion between common equity and convertible preferred shares.

The sale of securities will result in a post-tax earnings loss of $1.8 billion, SVB's letter said, but the company added that its plan to reinvest the proceeds should be "immediately accretive" as the bank reshapes its balance sheet. The Federal Reserve has aggressively hiked interest rates over the past year, which can cause the value of bonds to fall — particularly those that have many years to maturity. SVB said it is reinvesting the proceeds from its sales into shorter-term assets.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

'sounds like a great time to buy'

Donate

lol 'breaking news' 5 minutes ago when stonk has been -40%+ since open

'Bear Stearns is fine!'

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in FİNANCE

Finance Finance Latest News, Finance Finance Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Stocks making the biggest premarket moves: Silvergate, Etsy, SVB Financial, Uber and moreStocks making the biggest premarket moves: Silvergate, Etsy, SVB Financial, Uber & more How's that ESG working out?
Source: CNBC - 🏆 12. / 72 Read more »