Bankrupt SVB Financial still exploring options for venture capital arm

BANKRUPT SVB (Silicon Valley Bank) Financial Group said on Wednesday (Jun 21) 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 US banking crisis in 15 years.

US 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 stabilised, with the KBW Regional Banking Index gaining 8.3 per cent so far this month up to Wednesday’s close.

However, the index is still down more than 20 per cent from early March, when the crisis began.

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SVB Financial to sell SVB Securities to management team

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A hearing to approve the sale of SVB Securities is scheduled for Jun 29 in the United States Bankruptcy Court for the Southern District of New York. The deal will close shortly thereafter, SVB Financial said. REUTERS