Trouble has been brewing in the banking industry and is beginning to surface one after another…..CS, DB and now SVB. SVB stopped lending to tech companies as they knew they would be struggling to repay debts in the high interest rates environment. However they invested the idle capital into LT bonds which was counterintuitive as bond prices fall when rates are increasing. Confused?
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.
www.cnbc.com