Free Republic

SVB Financial Group faced a perfect storm, but there are plenty of other banks that would face big losses if they were forced to dump securities to raise cash Silicon Valley Bank has failed following a run on deposits, after its parent company’s share price crashed a record 60% on Thursday. Trading of SVB Financial Group’s SIVB stock was halted early Friday, after the shares plunged again in premarket trading. Treasury Secretary Janet Yellen said SVB was one of a few banks she was “monitoring very carefully.” Reaction poured in from several analysts who discussed the bank’s liquidity risk.

CNBC analyst Jim Cramer is once again being pilloried on social media after a clip resurfaced showing the “Mad Money” host recommending viewers buy shares of Silicon Valley Bank’s parent company, which owns the tech-driven commercial lender that swiftly collapsed on Friday. “The ninth-best performer to date has been SVB Financial (the bank’s parent company). Don’t yawn,” Cramer told viewers during a Feb. 8 episode of “Mad Money.” Cramer listed SVB Financial among his “biggest winners of 2023 … so far” alongside blue-chip stocks such as Meta, Tesla, Warner Bros. Discovery, and Norwegian Cruise Line. “This company is a merchant...

Several regional bank stocks were halted Friday morning amid a market selloff led by SVB Financial Group, owner of startup-focused Silicon Valley Bank. First Republic Bank, PacWest Bancorp, Western Alliance Bancorp and Signature Bank were all halted for volatility after sharp declines in early trading. First Republic had fallen by as much as 50%. PacWest and Western Alliance had slid more than 30%. Signature was down by about 25%. SVB Financial said it would sell securities at a nearly $2 billion loss on Wednesday in the face of larger-than-expected deposit outflows. Its stock, which was halted early Friday, has fallen...