Invesco KBW Bank ETF (KBWB:US) is down over 17% in March to hit the lowest levels since 2020, on the drama surrounding Silicon Valley Bank SVB Financial Group (SIVB:US).

The regional bank, focused on high-growth startups, is on the brink of a collapse. CNBC reported on Friday that the bank is in talks to sell itself after failing to raise cash to shore up its balance sheet.

Shares of SVB fell 60% on Thursday before collapsing again on Friday after the company announced a plan on Wednesday to raise over $2 billion. The bank was looking to sell $1.25 billion in its stock and another $500 million of convertible preferred shares.

“We are taking these actions because we expect continued higher interest rates, pressured public and private markets, and elevated cash burn levels from our clients as they invest in their businesses. We are experienced at navigating market cycles and are well positioned to serve our clients through market volatility, with a high-quality, liquid balance sheet and strong capital ratios,” said CEO Greg Becker.

Moreover, SVB said its long-term investor General Atlantic bought $500 million worth of its stock. The SVB situation rang alarm bells around Wall Street despite the belief that large banks are well-capitalized. 

Looking at the Capitol Trades’ data, one can see that several Congress members were reporting larger transactions involving buying bank shares. Rep. Michael McCaul bought shares of Wells Fargo (WFC:US) and Citigroup (C:US) last year.

Congressman Ro Khanna invested in Bank of America (BAC:US) and JPMorgan & Chase (JPM:US) in November last year, after he had bought shares of Wells Fargo (WFC:US), in June of 2022.
Similarly, Rep. Scott Franklin also invested in JPMorgan & Chase (JPM:US) stock in March 2022.