SVB Financial Group, the parent of Silicon Valley Bank, is under acquisition talks after the failure of the Silicon Valley Bank caused chaos in the global market and stablecoins to depeg. Big banks are considering buying SVB Financial Group, but the crypto market will remain unbanked to Silicon Valley Bank.
Big banks and firms including JPMorgan Chase & Co., PNC Financial Services, Morgan Stanley, and Apollo Management are in talks to acquire SVB Financial Group, reported Axios on March 13. However, commercial banking business Silicon Valley Bank is left out of the SVB Financial Group acquisition deal discussions. SVB Financial Group has other businesses including asset management, private wealth, and securities.
The U.S. Federal Deposit Insurance Corporation (FDIC) gave interested buyers to submit their bids before the deadline of Sunday afternoon. U.S. Treasury Secretary Janet Yellen also ruled out the probability of a government bailout of SVB.
Meanwhile, UK banks such as the Bank of London and HSBC on Sunday submitted bids to acquire Silicon Valley Bank UK. Britain’s Finance Minister Jeremy Hunt today announced that the government and the Bank of England have decided on a private sale of the UK arm of Silicon Valley Bank to HSBC.
A joint statement by the U.S. Department of the Treasury, Federal Reserve, and FDIC revealed that depositors will have access to all of their money starting March 13. However, shareholders and certain unsecured creditors will not be protected.
Crypto Market Remains Unbanked
The crypto market remains unbanked as Silicon Valley Bank is remained out of the deal. Also, other crypto-friendly banks Silvergate Bank and Signature Bank have been closed by U.S. regulators.
Closure of banks causing stablecoins to depeg to USD as mining and redemption mechanisms are impacted. Investors and crypto firms are converting their stablecoins to other cryptocurrencies.
Binance CEO Changpeng “CZ” Zhao today completed a conversion of the remaining funds in the Industry Recovery Initiative from BUSD into Bitcoin (BTC), BNB, and Ethereum (ETH) due to the collapse of crypto-friendly banks and stablecoins depeg events.
Also Read: Ripple Funds Stuck In Collapsed Silicon Valley Bank? Garlinghouse Replies
The post JPMorgan Among Big Banks Bidding To Acquire SVB, But There’s A Catch appeared first on CoinGape.
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