Bank stocks continue to explode, U.S. stocks plummet
U.S. stocks fell sharply this morning, and the most important force dragging U.S. stocks into the quagmire was bank stocks.
On Wednesday, Silvergate, a bank focused on investing in cryptocurrencies, closed its doors. Silvergate Capital fell 42.16% on Thursday after Silvergate previously announced that it would cease operations and voluntarily liquidate its subsidiary Silvergate Bank, which provides services to the cryptocurrency industry.
The bigger thunder is yet to come.
On Thursday, Silicon Valley Bank, which is much larger than Silvergate, announced it would take a $1.8 billion loss from the sale of some securities in its portfolio and seek to raise $2.25 billion through the sale of common and preferred shares - something Wall Street viewed as It was panic selling of assets and severe dilution of equity.