The CEO of Silicon Valley Bank (SVB), which serves start-ups and high-tech companies, Greg Becker, held a conversation with the bank’s portfolio companies this evening (Thursday) where he asked them to “calm down”, according to a report by the technology news website The Information. Against the background of fear for the fate of the bank after the collapse of the stock by about 63% today, which reduced over 10 billion dollars from the bank’s value at once. The CEO of an Israeli company who was present at the conversation said that the CEO was trying to calm the spirits and said that “everything is under control “.
● What is behind the American bank stock collapsing by more than 50%?
● The window of opportunity to obtain a “Golden Visa” for real estate investments in the European Union is beginning to close
According to the report, Becker said that “companies panicked and started calling because of the fear that Silicon Valley Bank was in trouble – but that is not the case. We have enough liquidity to support all our customers, but on one condition: if all the companies feed each other with the fear that the bank In trouble, it will become a real challenge. I ask everyone to relax and support us as we supported you in difficult times.”
Last night, Silicon Valley Bank (SVB) announced that it intends to sell $1.75 billion worth of shares to maintain operating balance – after billions in losses incurred as a result of purchasing low-interest mortgage-backed bonds in 2020 and 2021.
According to the estimate, Silicon Valley Bank serves half of the technology companies backed by venture capital. It owns an Israeli branch managed by David Cohen and Gadi-Ben Moshe and serves huge companies including Itoro, Redis, Verbit, Fireblocks and Capitolis.