The US banking regulator has kicked off the sale of collapsed Silicon Valley Bank’s German operations, seeking bids by July 19 for the $460mn portfolio of loans, leases and other assets.
Details of the sale were disclosed in marketing materials sent to large investors in recent days by First Financial Network, the loans specialist handling the sale on behalf of the Federal Deposit Insurance Corporation. The FDIC, which confirmed the sale process, seized SVB on March 10 after a catastrophic deposit run at the California-based bank.
SVB collapsed after revealing that it had suffered huge losses on its securities portfolio. Its failure, which has been blamed on a combination of poor risk management, supervisory failures and rising interest rates, kicked off a spate of turmoil and deposit outflows at other regional banks. That fatally wounded Signature Bank then First Republic, which was seized by the FDIC and sold to JPMorgan Chase on May 1.