SVB Financial stock slides 66% premarket as fears of a potential run on the bank continue

SVB Financial Group
the parent of Silicon Valley Bank, saw its stock tumble more than 66% in premarket trade Friday, in a continued response to reports late Thursday that several funds were advising clients to pull their money, sparking fears of a run on the bank. Bloomberg News late Thursday reported that Founders Fund, the San Francisco-based venture-capital fund co-founded by Peter Thiel, has advised companies to do just so. The report cited people familiar with the matter. It came after SVB Financial ended down a record 60% in the regular trading day after disclosing large losses from securities sales and announcing a dilutive stock offering along with a profit warning. The bank was unprepared for rising interest rates which have hit its net interest income and net interest margin. The news created carnage in the banking sector on Thursday, and sparked fears that other banks are in a similar position. Early Friday, the Wall Street Journal reported that the bank had $15 billion of outstanding loans from the Federal Home Loan Bank of San Francisco at the end of 2022–it had none a year earlier–and pledged collateral of almost three times what it borrowed to back the advances.For more, see: 10 banks that may face trouble in the wake of the SVB Financial Group debacle