Two tech-centric banks strike trouble, spooking markets

Two tech-centric financial services operations have hit trouble, giving confidence in the sector another kicking. Silicon Valley Bank (SVB), a part of the SVB Financial Group, bills itself as serving "innovation companies from their earliest stages – before they get their first round of VC funding – all the way through and …

[Richard 12]

Why does anyone think "crypto" has anything to do with the tech sector?

Other than being a market that buys a lot of GPUs, anyway.

[iron]

Yeah I'd call this a weakness in the FINANCE sector.

Tech companies should be more wary of which of these dodgy, fly by night finance companies they work with.

[Michael Wojcik]

SVB was 40 years old when it died on Friday. It wasn't "fly by night". "Mismanaged" and "unwise" I'll allow.

[Throatwarbler Mangrove]

To me, it seems like cryptocurrency has as much to do with tech as social media. Facebook certainly innovated in the field of data center technology, but they are mainly interesting because of how their use of existing technology has affected society. Similarly, one can look at crypto and observe how math and technology are being used to attempt to disrupt traditional finance with, uh, varied results. While these companies aren't really creating new technology, reporting on how technology is used is certainly within The Register's traditional remit.

[katrinab]

Or why does Über have anything to do with the tech sector?

It is a minicab operator, and should be benchmarked against the likes of Addison Lee, who also have a mobile app you can use to book their cars.

[Pascal Monett]

"as the Bank is not in significant trouble – it just needed to find $21 billion in a hurry"

Reminds me somehow of that famous exchange in Cloud City :

C3PO is lying in pieces in a box

Calrissian : "Having trouble with your droid ?"

Solo : "Trouble ? No. Why ?"

[Anonymous Coward]

markets as in banks, not tech

The SVB announcement has dented bank shares around the world, as it has reminded investors that banks hold a lot of bonds whose resale value has fallen with the rise in interest rates; for example, the 4 largest US banks have had over $50 billion wiped off their market value.

[John Miles]

SVB now shut by regulators

cnbc.com link

[Howard Sway]

Now reported that the CEO of SVB sold $3.57 million of stock in the last fortnight

He may have a little bit of explaining to do about that.

[Spamolot]

Re: Now reported that the CEO of SVB sold $3.57 million of stock in the last fortnight

I'm sure it was all above board and NOT based on insider knowledge. /s

[Groo The Wanderer]

Re: Now reported that the CEO of SVB sold $3.57 million of stock in the last fortnight

No, it was perfectly above board. The CEO had no idea the bank was about to collapse. Like most CEOs, he just collects the big bucks but leaves the mid-level management holding the bag for their "decisions" and "advice" for running the bank. CEOs are _never_ held to task for mismanagement, apparently.

[Michael Wojcik]

And now a third

New York just took over Signature Bank. Signature was more like Silvergate than like SVB – heavily exposed to the cryptocurrency players. The Signature takeover closes another of the very few connections between cryptocurrency exchanges and the legitimate US financial system.

More details as usual are available from Molly White. Worth reading if you're a cryptocurrency supporter (for the news) or skeptic (for the lulz – seriously, this is one of my favorite daily treats).