SVB Financial Group
SIVB,
-60.41%
fell more than 22% in the extended session Thursday as reports surfaced that several funds are advising clients to pull their money from Silicon Valley Bank.
Bloomberg News late Thursday reported that Founders Fund, the San Francisco-based venture-capital fund co-founded by Peter Thiel, has advised companies to do just so. The report cited people familiar with the matter.
The fund told the companies there was “no downside” to withdrawing their money as concerns about SVB’s financial stability swirl, Bloomberg reported.
Also see: Bank carnage drags stocks lower as SVB Financial shares plunge
Separately, Axios reported that “several” venture-capital firms, including Coatue, are advising portfolio companies to consider pulling their money from SVB as well.
Bloomberg reported that SVB CEO Greg Becker held a conference call with clients Thursday urging them to “stay calm.”
SVB Financial, the bank’s parent, ended down 60% in the regular trading day. SVB late Wednesday cut its guidance range and disclosed large losses from securities sales and a stock offering meant to provide a boost to its balance sheet.
More: 10 banks that may face trouble in the wake of the SVB Financial Group debacle
