Feds Hunting A Buyer For Silicon Valley BankMarch 14, 2023
U.S. government regulators failed to find a buyer for collapsed California institution Silicon Valley Bank in their first attempt over the weekend, but they’re reportedly aiming to hold a new auction aimed at finding a home for its assets, which include a wine division with over $1 billion in loans to the wine industry.
During an initial sale attempt this weekend, none of the leading U.S. banks offered a bid for SVB, The Wall Street Journal reported, although one smaller institution did and was declined by the FDIC. Axios reported that JP Morgan and PNC are potential suitors, while Morgan Stanley and Apollo Management are also involved in talks around SVB’s holding company, with the latter aiming to finance a potential transaction or acquire parts of the business.
SVB’s wine unit, with about 400 clients, is one of the parts that could be split off in any potential sale, with those holding loans through the bank waiting to see how the process will play out. On Sunday, the federal government stepped in to backstop SVB (along with Signature Bank in New York), “in a manner that fully protects all depositors,” although shareholders and certain unsecured debtholders will not be protected.—Daniel Marsteller
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