On Wednesday, March 8, 2023, Silvergate Capital announced it ended operations and liquidated its Silvergate Bank.
This announcement sent its stock price plummeting, following a months-long downward spiral for Silvergate Bank, which was over-exposed to cryptocurrencies.
One day later, Silicon Valley Bank informed some clients that wire transfers could be delayed.
The bank's support phone lines became inaccessible.
In addition, numerous customers stated having difficulty logging in to the company's website to view their account information and make transfers.
Meanwhile, Silicon Valley Bank competitors like JPMorgan sought to convince some SVB customers to move their funds from SVB to JPMorgan.
This Friday morning, trading in Silicon Valley Bank stock has been halted as a classic run on the bank unfolds.
The entire bank stock index is down big as overnight deposits have been walking out the door… or rolling into higher-rate options, squeezing bank profit margins.
One of the prevailing themes is that the Fed has been trapped via its mandate to fight inflation and maintain high employment.