Banks feel sting of Fed fight against inflation

Associated Press

The banking sector is in retreat, as it has been all week, as the effects of the Federal Reserve’s fight against inflation begins to weigh heavily on a small number of banks that cater to the tech sector. Late Thursday, SVB Financial Group, the parent of Silicon Valley Bank, lost 60% of its value after announcing plans to raise up to $1.75 billion in order to strengthen its capital position. Major financial institutions like Bank of America, Citigroup and JPMorgan were not immune, falling between 4% and 6%. Silicon Valley plunged sharply Friday and was extraordinarily volatile before trading was halted. The banking sector is leading all others in declines.