Norway’s sovereign wealth fund (SWF) held over US$263 million in Signature Bank and SVB Financial Group, the owner of Silicon Valley Bank (SVB).
In a recent report, analysts from MarketWatch quoted Norges Bank Investment Management (NBIM), which manages the SWF as saying “This is the biggest U.S. bank collapse since the financial crisis and we are closely monitoring the situation in the market.”
Both Silicon Valley Bank (SVB) and Signature Bank have now been taken over by the federal authorities.
SVB collapsed dramatically last Friday, with shares plunging 60% before the SEC halted trading. On Wednesday, the bank announced a massive capital raise, saying it would sell US$2.25 billion in new shares to fix the balance sheet.
That in turn rattled investors, who feared the high share of uninsured deposits, creating a panic and a run on the bank.
