Shares of U.S. Regional Banks Plummet as Fears of Bank Contagion Following SVB Financial Group Collapse Linger

Shares of U.S. regional banks slumped on Monday, with First Republic Bank leading the losses, as news of fresh financing failed to assuage fears of possible bank contagion following the collapse of SVB Financial Group and Signature Bank.

The sudden collapse of Silicon Valley Bank (SVB) on Friday has left many of its customers, such as New York-based swimwear company Andie Swim, in a state of panic. Founder Melanie Travis told CBS News that she was “panicked and flustered” upon hearing the news.

In response to Reuters queries, a bank spokesperson said the bank is “continuing to fully serve the needs of our clients … at our offices and online.” San Francisco-based First Republic has been able to meet withdrawal demands with the help of additional funding from JPMorgan Chase, the mid-cap lender’s executive chair, Jim Herbert, told CNBC.

SVB catered to envelope-pushing tech startups, internet and software companies, as well as firms in the life science and health care space, and premium winemakers. The bank had $210 billion in assets and was the 16th-largest U.S. bank.

The collapse of SVB has raised concerns of possible bank contagion, with investors selling off shares of regional banks in response. Despite the additional funding from JPMorgan Chase, investors remain wary of the potential fallout from the collapse.