SVB decides to sell SVB Securities, its investment banking division
SVB Financial Group has inked an agreement with a group led by Leerink and backed by funds managed by The Baupost Group, to sell its banking division - SVB Securities.
The company said that the bidder group led by Leerink, who is chief executive of SVB Securities, will take over the company for a combination of cash, repayment of an intercompany note, and a 5% equity instrument.
MoffettNathanson LLC, the company's research business, was not included in the transaction, the collapsed lender said, adding that it will remain a part of the company.
The deal comes after Silicon Valley Bank was taken over by the Federal Deposit Insurance Corporation (FDIC) in March after depositors rushed to pull out their money in a bank run that wiped out more than half the market value of several U.S. regional lenders and triggered the worst banking crisis since 2008.
First Citizens BancShares Inc (FCNCA.O) bought all the loans and deposits of the failed bank in March, leaving some $90 billion in securities with the FDIC for sale.
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