The Moody's call came after the value of the bonds where SVB had parked its money fell due to the higher interest rates.
bankers for advice and flew to New York for meetings with Moody's and other ratings firms, the sources said.SVB then worked on a plan over the weekend to boost the value of its holdings. It would sell more than $20 billion worth of low-yielding bonds and reinvest the proceeds in assets that deliver higher returns.
As SVB executives debated when to proceed with the fundraising, they heard from Moody's that the downgrade was coming this week, the sources said.The bank lined up private equity firm General Atlantic, which agreed to buy $500 million of the $2.25 billion stock sale, while another investor said it could not reach a deal on SVB's timeline, the sources said.Moody's downgraded the bank, but only by a notch because of SVB's bond portfolio sale and plan to raise capital.
SVB had not done the preparatory work needed to sign confidentiality agreements with investors who would commit to a deal of such a size. Its lawyers advised the bank that investors would need at least 24 hours to digest new downbeat financial projections and complete the sale, the sources said.SVB's stock plunged on news of the share sale, ending Thursday down 60% at $106.04. Goldman Sachs bankers still hoped they could close the sale at $95, the sources said.
Hay que saber que hay bancos ó entidades que resultan ser bancos fantasmas. Aparecen y desaparecen y nadie sabe qué sicedio6ni cuánto desapareció. Saludos cordiales atte Soy Argentina 🇦🇷☯️🇦🇷✌️
Had nothing to do with bad banking principles. It was Moody's fault. I suppose Leyman Bros was not their fault either!
Actually it began way before that, poor decisions and terrible risk management. A lack of focus on actual banking probably contributed
But just one day ago the bank was rated A by Moody's - shows you how meaningless the rating is. Bank also proudly had diversity, quality, sexual inclusion If only instead they employed based on merit instead of skin color, gender, or sexual orientation
I’m sure it began with greed and corruption try exodus_io be your own Bank
If you want a serious deep dive on the economic outlook post-Silicon bank collapse, SVBCollapse LibertyLockPod just did a great one here Recommend you watch it
Spanish people hardly helping Americans be the strongest USA
find a journalist ... wrong
It began when the rat in charged jumped ship.
Not true. It began with risky and poorly collateralized lending practices.
Hope it won’t trigger domino effect.
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