The early trading on Friday saw a 30% decline in Signature Bank (SBNY) shares as the banking industry felt the effects of the Silvergate (SI) collapse.
Today's session has seen erratic trading, with SBNY fast recovering from a drop to close 12% lower as of press time.
Silvergate (SI), a fellow cryptocurrency-friendly bank, revealed on Wednesday that it would voluntarily liquidate its assets after delaying the submission of its annual 10-K report due to inquiries from its auditors and accountants regarding its financial information. Although its shares are up 5% today, they are still down 98% from the previous year.
While Silvergate's failure may have given investors pause about the resilience of banks with ties to the cryptocurrency industry, the crisis has now reached more conventional lenders. The holding company for Silicon Valley Bank, SVB Financial Group (SIVB), is down more than 40% on Friday and is now down well under 80% for the week. The tech-friendly lender disclosed a loss of about $1.8 billion on a portfolio of securities valued at $21 billion earlier this week, necessitating a share sale to increase capital.
The wide SPDR S&P Bank ETF (KBE), whose top 10 holdings include financial behemoths Citigroup (C) and Bank of New York (BK), is down 4.3% today and 15% for the week.