JPMorgan warns about Silicon Valley Bank’s risk
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JPMorgan warns about Silicon Valley Bank’s risk

JPMorgan issued a warning about Silicon Valley Bank’s “$16 billion unrealized losses” in November, according to an analyst report reviewed by The Post on Sunday.

The report was released after a “deep dive webinar” between JPMorgan and SVB’s CFO Dan Beck. The report expressed concern that if SVB’s balance of deposit outflows and inflows persists, the company may have to sell underwater Held to Maturity (HTM) securities and realize losses.

Despite the warning, JPMorgan’s analysts remained optimistic about the bank and gave it an “overweight rating”. However, insiders say that sell-side analysts always put a positive spin on things to remain in the company’s good graces.

Many on Wall Street were also optimistic about SVB’s prospects before its collapse. CNBC analyst Jim Cramer has recently come under fire for recommending viewers buy shares of SVB’s parent company, which owns the tech-driven commercial lender that collapsed.

Cramer listed SVB Financial among his “biggest winners of 2023…so far” alongside blue-chip stocks such as Meta, Tesla, Warner Bros. Discovery, and Norwegian Cruise Line. Despite Cramer’s recommendation, SVB collapsed on Friday.


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