The dramatic selloff in shares of SVB Financial (SIVB) has bank investors on tenterhooks, worrying that the troubles at the Silicon Valley-based lender may be indicative of more pain to come across the industry, Carleton English writes in this week’s edition of Barron’s. It may be a buying opportunity instead, the author argues. SVB is unique in that its client base is concentrated in industries that have been especially hurt by the impact of higher rates. Larger banks like Bank of America (BAC), JPMorgan (JPM), and Wells Fargo (WFC) have much more diversified client bases and funding sources, the publication notes. That doesn’t mean large banks won’t feel some pain from the current dynamics-as we witnessed Thursday-but it isn’t likely to be as catastrophic, the author writes. Reference Link
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