: SVB Financial stock tumbles 22% after hours on reports of funds advising companies to pull money from bank
SVB Financial Group SIVB fell more than 22% in the extended session Thursday as reports surfaced that several funds are advising clients to pull money from Silicon Valley Bank. Bloomberg late Thursday reported that the Founders Fund, the venture capital fund co-founded by Peter Thiel, has advised companies to do just so. The report cited people familiar with the matter. The fund told the companies there was “no downside” to withdrawing their money as concerns about SVB’s financial stability swirl. Axios reported that “several” venture capital firms, including Coatue, are advising portfolio companies to consider it as well. SVB Financial, the bank’s parent, ended down 60% in the regular trading day. SVB late Wednesday cut its guidance range and disclosed large losses from securities sales and a stock offering meant to provide a boost to its balance sheet.
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