SVB Financial shares fall on reports of funds advising customers to withdraw money from banks
SVB financial group SVB,
fell more than 22% in Thursday’s extended session, as reports emerged that several funds are advising clients to withdraw their money from Silicon Valley Bank.
Bloomberg News It was reported late Thursday that Founders Fund, the San Francisco-based venture capital fund co-founded by Peter Thiel, advised companies to do just that. The report quoted people familiar with the matter.
The fund told companies there were “no downsides” to withdrawing their money amid concerns about SVB’s financial stability, Bloomberg reported.
Separately, Axios reports that “several” venture capital firms, including Coatue, are advising portfolio companies to also consider withdrawing their money from the SVB.
Bloomberg reported that SVB CEO Greg Becker held a conference call with clients on Thursday, urging them to “keep calm.”
SVB Financial, the bank’s parent company, ended the regular trading day down 60%. SVB lowered its forecast range late Wednesday, announcing big losses from asset sales and a share offering that is expected to bolster its balance sheet.
https://www.marketwatch.com/story/peter-thiels-founders-fund-advises-companies-to-pull-money-from-silicon-valley-bank-report-12bda21d?siteid=yhoof2&yptr=yahoo SVB Financial shares fall on reports of funds advising customers to withdraw money from banks