Source: YouTube Screenshot
The United States treasury chief voiced concern on Friday over the recent sell-off in bank stocks spurred by the collapse in the share price of high-tech lender Silicon Valley Bank.
“There are recent developments that concern a few banks that I am monitoring very carefully,” Janet Yellen told a Congressional committee. “When banks experience financial losses it is and should be a matter of concern.”
Shares in SVB’s parent company, SVB Financial Group fell more than 60 percent on Thursday following the disclosure that it had lost $1.8 billion in securities sales in an effort to raise funds. Trading was halted early Friday after a sharp decline in pre-market trading.
The bank’s disclosure has raised fears that a broader swathe of banks may be forced into similar transactions.
US banks including Citigroup and Wells Fargo fell in early trading, extending a selloff among European banks.