SVB Shares Halted for Pending News After Sinking Another 69%
- SVB extends plunge in premarket trading after sinking Thursday
- Analysts downgrade stock amid worries over withdrawals, rates
SVB Financial Group shares extended their plunge before being halted in premarket trading for pending news as prominent venture capitalists recommended companies withdraw their money from the lender, sparking further worries over its financial health and liquidity in the wider banking sector.
The stock, which fell by as much as 69% premarket on Friday, has tumbled following surprise announcement Wednesday from the Santa Clara, California-based bank holding company that it was issuing $2.25 billion of shares to bolster its capital position after a significant loss on its investment portfolio. The blow triggered a sharp selloff in US lenders, which sank Thursday by the most in almost three years and extended losses in US premarket trading on Friday.