A financial market fiasco out of Silicon Valley has pushed stocks down today, resulting in multiple trading halts. SVB Financial Group’s (NASDAQ:SIVB) Silicon Valley Bank has been seized by the U.S. government after making an announcement that triggered a bank run. After the bank reported an “inability to provide cash to its depositors,” panicked investors rushed to withdraw their funds. At the same time, investors rushed to offload SIVB stock but were stopped by a Nasdaq trading halt.

The Silicon Valley bank fiasco pushed many other banking stocks down, leading to trading halts being placed on several similar companies. While the other halted stocks have resumed trading, the fate of SIVB still hangs in the balance.

A Closer Look at the Halted Stocks

Other stocks that saw trading halts imposed today include First Republic Bank (NYSE:FRC), PacWest Bancorp (NASDAQ:PACW), Western Alliance (NYSE:WAL) and Signature Bank (NASDAQ:SBNY). All four have since resumed trading but have only plunged even further. As of this writing, FRC is the best performer out of the halted stocks, down only 14%. SBNY is down more than 25%, while PACW has fallen 36%. WAL is trending downward at an alarming rate, currently down more than 42% for the day. However, all four stocks look much better than SVIB, the company that prompted it all.

It’s not hard to see why regulators halted trading on these stocks. When investors realized that Silicon Valley Bank might collapse, they rushed to sell off stock in similar companies. As the Wall Street Journal reports:

“The events have left investors wary of unrealized losses that have piled up at banks since a deposit surge in the pandemic, which led many to take big positions in bonds that have since dropped in value.”

These previously halted stocks may ultimately recover, but it will take time. The disaster at Silicon Valley Bank has severely undermined trust in the sector, particularly for smaller banks with strong ties to the bond market. These companies were halted because they were prone to extreme volatility, and until the dust settles around the SIVB collapse, they still will be.

On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.