Western Alliance Bancorporation (NYSE:WAL) shares are trading lower by 41.10% to $36.75 Friday afternoon. The stock is trading lower in sympathy with SVB Financial Group (NASDAQ:SIVB) following news Silcon Valley Bank (SVB) has been closed Friday by the California Department of Financial Protection and Innovation, and the Federal Deposit Insurance Corporation has been appointed as the bank’s receiver.
The news comes on the heels of SVB’s parent company, SVB Financial Group, failing to raise enough cash to sustain operations.
SVB is a major bank for venture-backed companies, and it cited cash burn from clients as one reason it was looking to raise additional capital. The bank’s troubles underscore the difficulty companies face as of late due to escalating interest rates and a looming recession…Read More
