small things can lead to big reactions and that seems to be the case with bank stocks on thursday as a massive loss at svb financial sivb has caused stocks like jpmorgan chase jpm bank of america bac and wells fargo wfc to get pummeled here’s what’s happening silicon valley bankparent svb financial announced last night that it had sold securities from its portfolio for a 18 billion loss while also announcing plans to raise capital via an offering of common and preferred stock svb financial stock has tumbled 55 to 11935 on thursday the selling didn’t stop there the entire banking sector has gotten hammered with the spdr sp bank etf kbe off 68 and the spdr sp regional banking etf kre down 78 no one has been immune jpmorgan stock has fallen tk while bank of america has dropped tk and wells fargo has declined tk smaller banks have gotten hit even harder with zions bancorporation zion down 95 comerica cma off 84 and key corp key off 64 even charles schwab schw has tumbled 10 two issues appear to be at play the first is the massive losses that svb had to take on its bond portfolio calling into question just how much the securities banks own are worth if they are forced to sell most of the time though banks don’t have to sell but with yields rising holding on to deposits has gotten much harder and that could force other banks to sell their securities or raise interest rates for depositors hurting net interest margins for svb problems in silicon valley have also led to companies burning through their cash and causing deposits to dwindle now investors are extrapolating to the rest of the industry sometimes it takes just one snowflake to start an avalanche