Shares of Signature Bank (SBNY) experienced a sharp drop of up to 30% in early trading on Friday, following the news of Silvergate Bank's collapse, which had an impact on the entire banking sector. However, SBNY managed to recover from the dip and was down by 12% at the time of the report. Silvergate Corp. (SI) had announced on Wednesday that it would liquidate its assets after facing questions from auditors and accountants over its financial figures.
Though SI's shares rose by 5% on Friday, it had lost 98% of its value year-over-year. The impact of the crypto-friendly bank's collapse has also affected more traditional lenders like SVB Financial Group, whose shares are down by 40% on Friday and nearly 80% for the week. The SPDR S&P Bank exchange-traded fund (KBE) has also suffered, with a 4.3% drop on Friday and a 15% loss for the week. The four largest banks in the country, including JPMorgan, Bank of America, Citigroup, and Wells Fargo, collectively lost $52.4 billion in value on Thursday.