Bankrupt SVB Financial still exploring options for venture capital arm
6:20 pm Wednesday, June 21st, 2023
(Reuters) -Bankrupt SVB Financial Group said on Wednesday it is continuing to evaluate strategic alternatives for SVB Capital, its venture capital and credit investment arm, as well as other assets and investments.
The disclosure comes days after the company agreed to sell its investment banking division, SVB Securities, to a group led by the segment’s chief executive officer.
SVB Financial had collapsed into bankruptcy after former unit Silicon Valley Bank’s failure in March triggered the worst U.S. banking crisis in 15 years.
U.S. regulators had to step in to backstop a deal for regional lender First Citizens BancShares to buy the failed Silicon Valley Bank.
Jitters around the banking crisis have somewhat eased in the past few weeks as deposits stabilized, with the KBW Regional Banking Index gaining 8.3% so far this month up to Wednesday’s close.
However, the index is still down more than 20% from early March, when the crisis began.
A hearing to approve the sale of SVB Securities is scheduled for June 29 in the United States Bankruptcy Court for the Southern District of New York. The deal will close shortly thereafter, SVB Financial said.
(Reporting by Niket Nishant in Bengaluru; Editing by Devika Syamnath)
