Silicon Valley Bank as a Bellweather for the Banking World

Silicon Valley Bank stock drops 60% in one day..is it signal or noise?

Massive bit of information that will come out in drips and drops — probably as to not cause a panic unnecessarily. There isn’t any need for a panic anyhow..as banks have lost stock value & even failed before and will continue to fail into the future. There’s no way to predict what this particular instance foretells. But it’s strange, to say the least — and the ramifications of this type of banking contagion could easily spread depending on the deals made by the bank.

Early stage and growth companies (i.e., those who may consider themselves to be ‘forward thinking’) use Silicon Valley Bank (SVB) for a number of reasons in the California Startup world. The connections, the standards, the assistance with taking rapidly growing companies public later on — with the necessary financial controls no doubt, by now, built into the systems the bank uses.. (This last point being debatable — as SVB is not well known for their progressive technology. It’s all old BS.)

The connections they have, which span decades, as well as the experience financing some of the most rapidly growing companies on Earth have likely proven useful for those using their services.

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via TechCrunch

via Barron’s

It all depends on whether or not this spreads to other banking institutions or not.

If it does, could be the opening salvo of a 2008-style banking meltdown with institutions being nuked left and right, and all that comes along with that.

If it doesn’t — then it’s nothing — and things will continue on as they have for centuries. Greedy bankers gonna be greedy bankers.

In any case — a 60% hit to the stock of a major, if somewhat unknown outside of industry circles, banking player in the world of companies expected to become ‘Unicorns’ does not bode well for .. any other industry you can think of.