Tuesday, March 5, 2024

SVB agrees to sell its investment banking division


SVB Financial Group said on Sunday it has reached an agreement to sell its investment banking arm SVB Securities to a group led by Jeff Leerink and backed by funds managed by Popost Group.

A group of bidders led by Leerink, CEO of SVP Securities, will buy the investment banking business in a combination of cash, an inter-company bond and a 5% equity instrument, the company said.

Collapsed lender Moffett Nathanson, the firm’s research firm, said it was not included in the deal and would “remain part of the company”.

The deal comes after the Federal Deposit Insurance Corporation (FDIC)’s takeover of Silicon Valley banks in March wiped out more than half the market value of several regional lenders in the U.S. as depositors scrambled to get their money back in a bank run. It unleashed the worst banking crisis since 2008.

First Citizens bought all of the failed bank’s loans and deposits in March, putting about $90 billion in bonds up for sale to the Federal Deposit Insurance Corporation.

“The lender continues to evaluate strategic alternatives for its unit, SVB Capital, and the company’s other assets and investments,” he said.

SVB’s collapse in March reverberated around the world, prompting US depositors to flee smaller banks in search of bigger banks, while a blow to confidence pushed Credit Suisse into the arms of rival UBS. (Reuters)

See also  My next project is to build a civilization on Mars!
Nadia Barnett
Nadia Barnett
"Award-winning beer geek. Extreme coffeeaholic. Introvert. Avid travel specialist. Hipster-friendly communicator."

Share post:


More like this

The Future of Gambling in the UAE: Economic, Legal, and Social Dimensions

The United Arab Emirates (UAE) is on the brink...

Comparing the Best Trading Platforms in the UAE: Features and Benefits

Trading commodities, currency pairs, ETFs, and other investment vehicles...

Evgenia Timofeenko: What does it mean to be an investor in the hotel business?

Investors are always interested in finding effective objects for...

AFC Champions League 2023/24: Last-16 Fixtures, Latest Odds & Preview

The 2023/24 AFC Champions League group stage has been...