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SVB sells investment banking business

By Jonathan Easton

Silicon Valley Bank (SVB), the collapsed lender which failed in March, has entered into an agreement to sell off its investment banking division.

The deal will see a group led by Jeff Leerink and backed by funds managed by The Baupost Group acquire SVB Securities for a combination of cash, repayment of an intercompany note and a five per cent equity instrument.

The sale will not include the company’s research business MoffettNathanson, with SVB stating that the researcher will remain part of SVB.

This is the latest sale of SVB assets since the Federal Deposit Insurance Corporation (FDIC) took over the bank in March after a bank run that wiped out more than half the market value of several US regional lenders and was the spark for the biggest banking crisis since 2008.

SVB’s loans and deposits were bought by First Citizens BancShares in March, leaving the FDIC to oversee the sale of $90 billion in securities.

SVB’s UK business was acquired by HSBC, with it being combined with units in the US, Israel and Hong Kong last week for the creation of a new unit dubbed HSBC Innovation Banking.

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