NEW YORK - SVB Financial Group became the largest bank failure since the 2008 financial crisis on Friday, in a sudden collapse that roiled global markets and left billions of dollars belonging to companies and investors stranded.
California banking regulators closed the group, which did business as Silicon Valley Bank (SVB) and focused on start-ups, on Friday and appointed the Federal Deposit Insurance Corporation (FDIC) as receiver for later disposition of its assets.
The main office and all branches of Silicon Valley Bank will reopen on Monday and all insured depositors will have full access to their insured deposits no later than on Monday morning, the FDIC said.
But 89 per cent of the bank's US$175 billion (S$236.4 billion) in deposits were uninsured as at the end of 2022, according to the FDIC, and their fate remains to be determined.
The FDIC is racing to find another lender over the weekend that is willing to merge with SVB, according to people familiar with the matter, who requested anonymity because the details are confidential.
While the FDIC hopes to put together such a merger by Monday to safeguard unsecured deposits, no deal is certain, the sources added.
An FDIC spokesman did not immediately respond to a request for comment.
Separately, SVB Financial, the parent company of the bank, is working with investment bank Centerview Partners and law firm Sullivan & Cromwell to find buyers for its other assets, which include investment bank SVB Securities, wealth manager Boston Private and equity research firm MoffettNathanson, the sources said.
These assets could attract competitors and private equity firms, the sources added.
This story is from the March 12, 2023 edition of The Straits Times.
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This story is from the March 12, 2023 edition of The Straits Times.
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