SVB Financial Realigns Portfolio–and Blows Up the Banking Sector

Lender SVB Financial Group’s stock plummeted Thursday causing ripples in the banking industry, which had largely been insulated from recession worries and rising rates.

SVB’s troubles came as the Silicon Valley-based lender was forced to sell securities to realign its portfolio in response to higher interest rates while it manages lower deposit levels from clients, many of which are in the venture capital arena and burning through cash.