When Silicon Valley Bancshares announced last month that it had entered into a disciplinary agreement with the Federal Reserve, investors and analysts were plainly stunned.

Yet since the Oct. 14 disclosure, the stock price of the Santa Clara, Calif., company has risen faster than that of any other bank. Shares of $3.7 billion-asset Silicon Valley were trading at $35.625 at midday Friday, up 50% since Oct. 15. That compares with a 26.5% gain for the American Banker index of 225 banks, a 10.4% rise for the S&P 500, and a 7.2% gain for the Dow Jones Industrial Average.

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