Bloomberg: Silicon Valley Bank will be sold in parts

US regulators cannot find a buyer for the bankrupt Silicon Valley Bank (SVB), and therefore decided to split the bank into parts and sell it further. This is reported with reference to its own sources. Bloomberg.

According to the agency, the US Federal Deposit Insurance Corporation (FDIC) intends to split the bank into at least two parts. Until Wednesday, the regulator will accept applications from potential buyers of SVB Private Bank, which is engaged in private wealth management. And by Friday, applications should be submitted for the “transitional bank” artificially created by the regulator, which was established to manage the assets and liabilities of the SVB.

Initially, the regulator planned to end accepting applications from investors today, but in the end, the FDIC decided to extend the application deadline in order to try to find a buyer for either the entire SVB business or its individual parts.

Previously reportedthat the bank holding company from North Carolina, First Citizens, can buy out the bankrupt Silicon Valley Bank.

Silicon Valley Bank filed for bankruptcy on March 10. It is the 16th largest startup-focused bank in the US. The bankruptcy was the largest since the 2008 crisis and the second largest in US history after the bankruptcy of Washington Mutual Bank. Since the beginning of the month, the six largest Wall Street banks lost almost $165 billion in market capitalization.

According to the newspaper The New York Times, The US Department of Justice launched an investigation into the bankruptcy of Silicon Valley Bank. According to Reutersthe shareholders of Silicon Valley Bank filed a fraud lawsuit against the parent company, SVB Financial Group.

Read more about the consequences of bankruptcy – in the material “Investors doubt Wall Street”.

Kirill Sarkhanyants