JPMorgan Among Big Banks Bidding To Acquire SVB, But There’s A Catch
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
- Cyber Hornet Seeks SEC Nod for S&P 500 and XRP ETF
- Cathie Wood’s Ark Invest Eyes Stake in Tether as USDT Issuer Targets $500B Valuation
- Kraken Secures $500M at $15B Valuation, Eyes IPO in 2026
- Bybit Lists Ripple’s RLUSD Following BlackRock and VanEck Integration
- SWIFT Plans Stablecoin and On-Chain Messaging Pilot on Linea, Challenging Ripple
- Solana Price Set for Q4 Surge as Canary Capital ETF Filing Meets Wyckoff Accumulation
- Avalanche Price Could Surge to $50 as Transactions Jump 200%
- CHMPZ Price Prediction:Will This Net-Zero Community Token be the Next Gem?
- Ethereum (ETH) Price Set for a rebound as Whales Accumulate $1.6B ETH and Outflows Hit $622M
- HYPE Price Prediction As Bitwise Files For Hyperliquid ETF – Is $55 In Sight?
- Shiba Inu Price Eyes Recovery From Demand Zone With Burn Rate Soaring Nearly 400%
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
