Why Citi Stock Is Nosediving

Citigroup Inc C shares are trading lower by 6.50% to $45.20 Monday afternoon. Citi shares are diving as shares of several bank stocks are trading lower following the recent closure of Silicon Valley Bank and Signature Bank, the largest bank failures since 2008.

See Also: Why Silicon Valley Bank Collapsed: A Simple Explainer

What In The World Happened with SVB?

Our Benzinga team throughly recapped the events leading up to and following the run on SVB Financial.

SVB, the parent company of Silicon Valley Bank, counts many startups and smaller tech companies as clients. Deposits from these clients soared during the pandemic, as many of them grew their cash positions exponentially amid record low rates.

As deposits climbed, SVB decided to buy U.S. treasuries and government-backed mortgage securities with the influx of cash...Read More

What Is A Bank Run?

Amid broader industry uncertainty, our Benzinga team decided to explore the currently trending term - "bank run."

A bank run is an event that occurs when a large number of customers of a bank or other financial institution withdraw their deposits simultaneously over concerns of the bank's solvency. It is also known as a run on the bank.

Bank runs can cause a financial crisis, as they can force the institution to liquidate assets at fire sale prices to meet withdrawal demands, which in turn can lead to losses for depositors and other creditors....Read More

According to data from Benzinga Pro, C has a 52-week high of $58.25 and a 52-week low of $40.00.