By John Persinos As if investors donβt already have enough to worry about, Wall Street is starting to wonder whether the recent woes of two high-profile banks signal an imminent financial contagion. Are we about to experience a Lehman moment? As you probably remember, Lehman Brothers was a powerful global financial services firm and venerable brand name on Wall Street. Lehmanβs implosion in 2008 triggered a domino effect culminating in the global financial crash and Great Recession. I now bring your attention to SVB Financial Group (NSDQ: SIVB) and Silvergate Capital (NYSE: SI), both based in San Diego. In addition to Silicon Valley Bank, SVB Financial Group includes three other segments: SVB Private, SVB Capital, and SVB Securities. Silicon Valley Bank had surprised the market late Wednesday by announcing it was desperately short of cash. To shore up liquidity, the bank sold off a $21 billion bond portfolio for a huge loss. Shares of SVB Financial Group plunged Thursday. Attempts of parent SVB Financial this week to raise additional capital failed. Read More... |