https://www.cnbc.com/2023/03/10/first-republic-leads-regional-bank-rout-as-silicon-valley-bank-crisis-raises-fears-about-bond-losses.html Skip Navigation logo * watchlive logo Markets * Pre-Markets * U.S. Markets * Currencies * Cryptocurrency * Futures & Commodities * Bonds * Funds & ETFs Business * Economy * Finance * Health & Science * Media * Real Estate * Energy * Climate * Transportation * Industrials * Retail * Wealth * Life * Small Business Investing * Personal Finance * Fintech * Financial Advisors * Options Action * ETF Street * Buffett Archive * Earnings * Trader Talk Tech * Cybersecurity * Enterprise * Internet * Media * Mobile * Social Media * CNBC Disruptor 50 * Tech Guide Politics * White House * Policy * Defense * Congress * Equity and Opportunity CNBC TV * Live TV * Live Audio * Business Day Shows * Entertainment Shows * Full Episodes * Latest Video * Top Video * CEO Interviews * CNBC Documentaries * CNBC Podcasts * CNBC World * Digital Originals * Live TV Schedule Watchlist Investing Club * Trust Portfolio * Analysis * Trade Alerts * Video * Homestretch * Education PRO * Pro News * Pro Live * Subscribe * Sign In Menu * Make It * Select * USA * INTL * watchlive Search quotes, news & videos Watchlist SIGN IN Create free account logo Markets Business Investing Tech Politics CNBC TV Watchlist Investing Club PRO Menu Markets First Republic, other regional bank stocks sink after failure of Silicon Valley Bank Published Fri, Mar 10 202311:10 AM ESTUpdated 5 Hours Ago thumbnail Jesse Pound@jesserpound WATCH LIVE In this article * PACW * FRC * SIVB Follow your favorite stocksCREATE FREE ACCOUNT Traders on the floor of the NYSE Source: NYSE Regional and midsized bank stocks fell sharply on Friday as SVB Financial failed to find a buyer amid a rapid outflow of cash from clients and was shut down by regulators. Shares of First Republic fell nearly 15%, while PacWest Bancorp dropped more than 35%. Signature Bank, which has heavy exposure to the crypto industry, slid almost 23%. Stock chart icon hide content First Republic's stock fell in volatile trading on Friday. related investing news Our two financials differ from failed Silicon Valley Bank. But we're not buying the dips yet CNBC Investing Club Our two financials differ from failed Silicon Valley Bank. But we're not buying the dips yet Kevin Stankiewicz 3 hours ago A major inflation report and fallout from Silicon Valley Bank hang over markets in week ahead CNBC Pro A major inflation report and fallout from Silicon Valley Bank hang over markets in week ahead Patti Domm 5 hours ago Silicon Valley Bank blowup highlights deposit risks vs Treasurys CNBC Pro Silicon Valley Bank blowup highlights deposit risks vs Treasurys Bob Pisani 11 hours ago The declines on Friday were building on a large sell-off from Thursday. The S&P Regional Bank ETF fell 16% for the week, which would be its worst week since March 2020. Main Street community banks have business models that are very solid, says Frost Bank CEO watch now VIDEO4:5604:56 Main Street community banks have business models that are very solid, says Frost Bank CEO The Exchange SVB came under pressure after announcing Wednesday it had lost $1.8 billion on an asset sale and was looking to raise more capital. CNBC's David Faber reported Friday that the fundraising effort had failed and that SVB was exploring a potential sale. But Faber also reported the sale process was becoming difficult because of the rapid outflow of deposits from the bank. At midday Friday, regulators said they were shutting down the bank and the Federal Deposit Insurance Corp. would take over insured deposits. Regional bank shares had recovered some of their morning losses, but news of SVB's failure sent them tumbling again. Stock chart icon hide content SPDR S&P Regional Banking ETF, 1-day First Republic fell as low as $45 per share during Friday's session, a decline of more than 50%. However, the bank may actually get some benefit from SVB's demise, as it was one of the financial institutions that saw heightened inflows on Thursday. The stock closed Friday at $81.76 per share. While SVB's situation is somewhat unique because of its funding base focused on tech startups, other banks with large bond portfolios could face similar issues if they were forced to sell those bonds before maturity in order to raise funds. Treasurys have fallen in value the last 12 months as the Federal Reserve hiked rates eight times. Those bond sales could incur losses like what has occurred with Silicon Valley Bank. Still, Wall Street analysts believe that the issues at SVB are unlikely to spread to the broader banking sector. Shares of large banks saw smaller declines or even rose on Friday. What's more, most of the assets sold by SVB were Treasurys, which are not at risk of default and will keep their value at maturity. The financial crisis of 2008-2009 involved mortgage-backed securities that collapsed in value from housing loan defaults. logoTV WATCH LIVElogoWATCH IN THE APP UP NEXT | ETListen logoTV WATCH LIVElogoWATCH IN THE APP UP NEXT | ETListen logo * Subscribe to CNBC PRO * Licensing & Reprints * CNBC Councils * Select Personal Finance * CNBC on Peacock * Join the CNBC Panel * Supply Chain Values * Select Shopping * Closed Captioning * Digital Products * News Releases * Internships * Corrections * About CNBC * Ad Choices * Site Map * Podcasts * Careers * Help * Contact * * * * * * * News Tips Got a confidential news tip? We want to hear from you. 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