Shares in SVB Financial Group, parent of crisis-hit Silicon Valley Bank, are due to plummet significantly when Wall Street commences Friday trades.
After dipping 60% on Thursday, shares in the group are down another 45% in pre-market sales, with that number increasing by the minute.
SVB’s share price of US$59 is the lowest the bank has seen since 2011.
The Santa Clara-headquartered bank to the Silicon Valley tech sector launched a US$1.8bn share sale on Wednesday after being forced to sell US$21bn in US Treasury bonds at substantial losses to shore up its struggling balance sheet.
Fears of a bank run as depositors flee for the exits are causing huge losses for the bank’s share price, made worse jitters over the voluntary liquidation earlier this week of another Californian tech-heavy bank Silvergate.
Market contagion risks are also hitting major financial institutions including Morgan Stanley (NYSE:MS) and Wells Fargo.
More to come.