SVB Securities Sale Attracts Solitary Bidder

Silicon Valley Bank’s former parent has reportedly drummed up little interest in its investment business.

“At this time, there is one bid that is currently deemed to be a qualified bid under the bid procedures,” Christian Jensen, an attorney representing SVB Financial in its sale of SVB Securities, said at a Wednesday (May 31) bankruptcy court hearing, per Bloomberg Law.

Jensen did not identify the bidders or offer details about the bid, according to the report. A hearing is scheduled for June 5 on the sale, although it could be pushed back to give bidders more time to examine relevant documents.

SVB Financial Group — the former parent company of Silicon Valley Bank — filed for bankruptcy in March, one week after the bank was taken over by regulators. The Chapter 11 filing did not include SVB Securities and SVB Capital’s funds and general partner entities, the company noted at the time.

“The Chapter 11 process will allow SVB Financial Group to preserve value as it evaluates strategic alternatives for its prized businesses and assets, especially SVB Capital and SVB Securities,” SVB Financial Group Chief Restructuring Officer William Kosturos said in a March 17 news release. “SVB Capital and SVB Securities continue to operate and serve clients, led by their longstanding and independent leadership teams.”

The release also noted that there was “significant interest” from potential buyers for SVB Capital and SVB Securities.

Meanwhile, the impact of Silicon Valley Bank’s collapse continues to be felt. Wednesday brought reports that the Securities and Exchange Commission (SEC) is looking into withdrawals made from the bank before it folded.

The SEC has asked for records of money transfers, investor communications and emails with the bank.

Reached for comment, an SEC spokesperson told PYMNTS via email: “The SEC does not comment on the existence or nonexistence of a possible investigation.”

Also Wednesday, the Federal Deposit Insurance Corporation released quarterly data showing that the failures of Silicon Valley Bank had strained the government’s deposit insurance fund.

The fund had $116 billion in assets at the conclusion of this year’s first quarter, compared to $128 billion at the end of 2022. In addition, the ratio of assets to insured deposits in America’s banks dipped to 1.1%, which is below the legally mandated minimum of 1.35%.