Banking Stock Opportunities After Silicon Valley Bank Collapse
The banking industry was shaken this week as Silicon Valley Bank, one of the world's most powerful tech investors, collapsed on Friday and was taken over by federal regulators. This marks the largest U.S. bank to fail since the 2008 global financial crisis.[0]
Investors are now wondering what caused the collapse of Silicon Valley Bank. While there is no definitive answer yet, many experts agree that there is not a liquidity crunch facing the banking industry and that most banks have ample access to liquidity.[1]
Even with the uncertainty surrounding Silicon Valley Bank, several other banking stocks have seen a surge in activity over the past few days. Phillip D. Green, CEO of Cullen/Frost Bankers Inc., made one of the biggest disclosed bets by investing $1,012,600 in the Texas-based company.[2] He purchased 9,500 shares of the company, which closed Tuesday at $111.52, up about 4.6% from the purchase price.[2]
Other banking stocks to consider include JPMorgan Chase (JPM) and CVB Financial Corp (CVBF), both of which are part of the S&P 500 and have seen a 2.5% and 1% gain, respectively. Equity Bancshares Inc (EQBK) has also had a strong performance and has grown 8% in the past few days.
For those looking to invest in banking stocks, now may be an ideal time. With the market being so unpredictable, it's important to do your research and choose stocks with long-term potential. Investing in stocks with a low price such as those trading under $10 and having big upside potential may be a wise choice.
0. “After Silicon Valley Bank collapses, plenty of worries over what's next” NPR, 14 Mar. 2023, https://www.npr.org/2023/03/14/1163135286/silicon-valley-bank-collapse-fallout-whats-next
1. “11 Bank Stocks With Insider Buying and Selling Last Week” Yahoo Entertainment, 15 Mar. 2023, https://www.yahoo.com/entertainment/11-bank-stocks-insider-buying-131826871.html
2. “Regional Bank Bosses Grab ‘Bargain' Stocks From SVB Turmoil” Yahoo News, 14 Mar. 2023, https://news.yahoo.com/regional-bank-bosses-snap-bargain-204757176.html
