US authorities seek buyers for Svb assets
US regulators are looking for a buyer for various companies Silicon Valley Bank Financial Group, which in addition to the commercial bank includes Svb Securities, Svb Capital e Svb Private. Federal Deposit Insurance Corp. now aims to find buyers for the group’s various businesses and then return as much of the customers’ money as possible. Probably, he writes Bloombergthat the big banks want to at least evaluate the purchase of the assets of Svbgiven their manageable size and attractive customer base of technology companies and their wealthy founders.
The bank, folded by the error of have accumulated obligations just before the rate hike and from its highly concentrated deposit base, it nonetheless posted profits every year before its rapid collapse. On the other hand, the FDIC’s statement on Friday did not indicate a likely quick sale of the entire company.
Early dividend to uninsured depositors
The supervisor said it aims to give a early dividend to uninsured depositors within the next week and that future payments could occur following the sale of assets. At the end of the year the bank held approx $212 billion in assets, but the number has certainly decreased since then as the bank sold some bonds in its portfolio to raise cash and many depositors withdrew their funds. As of December 31, Silicon Valley Bank had more than 8.500 employees with offices around the world: not only in the US and Canada but also in the UK, the Netherlands and Asia.
Meanwhile, the British clearing bank The Bank of London is considering a bailout bid for the UK arm of Silicon Valley Bank, he reported Sky News.
The British bank has mandated the investment bank Perella Weinberg Partners to advise her on her interest in Silicon Valley Bank UK Limited (SVB UK), said a source familiar with the matter. The Bank of London and SVB did not immediately respond to Reuters’ request for comment.
The Bank of England intervenes
News of the British bank’s interest in the offer comes a day after the Bank of England said it plans to seek a court order to place SVB UK into insolvency proceedings, after US regulators took over parent company SVB Financial Group on Friday.
The slump in SVB shares, which began on Thursday, has spilled over into other US and European banks. US banks have lost over 100 billion dollars in value on the stock market, while European stocks have lost another $50 billion in value over the past two days, according to a calculation by Reuters.