• Silvergate Bank and Silicon Valley Bank (SVB) have faced financial difficulties, resulting in the liquidation of Silvergate and the closure of SVB.
• Signature Bank (SBNY) may be a buy, as it is seen as the „last game in crypto-town“ by market analysts.
• Wells Fargo equity analyst Jared Shaw suggests that SBNY could use its status as the last major bank standing in the crypto market for additional pricing power.
Troubles for Silvergate and SVB
The cryptocurrency markets experienced a tumultuous week following the disclosure on March 8, 2023, of Silvergate Bank’s failure. The bank, which is friendly towards cryptocurrencies, informed the public that it was winding down its business and liquidating its assets. Additionally, Silicon Valley Bank (SVB) has also faced financial difficulties due to having been compelled to sell a $21 billion bond at a loss of $1.8 billion. As a result, SIVB shares plummeted more than 60% before regulators shut down SVB causing FDIC to take over as receiver creating the “Deposit Insurance National Bank of Santa Clara” which now holds FDIC-insured deposits from SVB.
Last Major Bank Standing: Signature Bank
Signature Bank (Nasdaq: SBNY) saw a decrease of over 13% in trading on Friday due to these events but losses had dropped to 8.55% by 11:30 p.m.(ET). Piper Sandler market analysts Mark Fitzgibbon and Gregory Zingone remarked that since Signature’s Signet platform also had numerous cryptocurrency clients; SBNY’s stock will continue to be under some pressure in short term though they noted that Signature’s balance sheet is significantly larger than that of Silvergate with many other deposit verticals to depend on. In addition, Wells Fargo equity analyst Jared Shaw suggested that SBNY might be an opportunity being „the last game in crypto-town“ providing potential additional pricing power through this status.
Analysts Perspective
Piper Sandler market analysts Mark Fitzgibbon and Gregory Zingone remarked on Thursday that since Signature’s Signet platform also had numerous cryptocurrency clients; SBNY’s stock will continue to be under some pressure in short term though they noted that Signature’s balance sheet is significantly larger than that of Silvergate with many other deposit verticals to depend on. Jared Shaw an equity analyst at Wells Fargo wrote about Signature Bank suggesting it might present an opportunity being “the last game in crypto-town” providing potential additional pricing power through this status..
Silvergate and SVB Troubles Impact On Market
The demise of Silvergate caused SBNY shares to drop more than 13% when Wall Street began trading sessions on Friday while Silicon Valley Banks troubles resulted their stocks plummeting more than 60% before regulators shut down SVB causing FDIC to take over as receiver creating the “Deposit Insurance National Bank of Santa Clara” which now holds FDIC-insured deposits from SVB .
Conclusion
With two major players out -Silvergate & SVV-,market analysts believe Signature may be a buy as it stands alone being considered „the last game in crypto town“. With its large balance sheet & multiple deposit verticals combined with potential additional pricing power through its status may suggest buying into SBNY stock could possibly offer investors great opportunities for growth & profits