Signature Bank shares are down nearly 30 percent in early trading today.
Silvergate’s collapse is starting to resonate in the banking industry. Banking sector shares fell nearly 4 percent today.
Echoes of Silvergate Reflect as Markets Drop
In today’s session, the action is volatile, with Signature Bank stocks rebounding quickly from the drop. As of writing, the decline remained at 12 percent.
The other crypto-friendly bank, Silvergate, announced on Wednesday that it would voluntarily liquidate its assets, delaying submitting its annual 10-K report due to questions from its auditors and accountants about the numbers. Silvergate’s shares are up 5 percent today, but are 98 percent lower year-over-year.
However, the repercussions of Silvergate also caused a decline in the crypto money industry.
Silvergate’s plight has sounded alarm bells for investors about the resilience of banks with close ties to the crypto industry.
One of the most notable declines in the industry is Silicon Valley Bank’s holding company, SVB Financial Group, which lost more than 40 percent today. As of now, the stock is down 80 percent since the start of the week.
JPMorgan, Bank of America, Citigroup and Wells Fargo, the country’s four largest banks by assets, lost a total of $52.4 billion on Thursday, amid the decline in the sector.
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