CNBC has reported that the parent entity of Silicon Valley Bank, SVB Financial, is in talks to sell itself. Specifically, the report noted the financial institution is resorting to a sale following failed attempts at raising capital.
The news of a potential sale followed a day of plummeting stock for the bank. Moreover, a previous report noted that today saw a 60% drop, citing mounting pressure on the banking sector as a whole. Conversely, there does appear to be a market for SVB if a sale is executed.
SVB Financial Seeking a Sale
Yesterday saw a plethora of news regarding a meltdown of one commercial bank, and what that could mean for the overall sector. Now, those losses have seemed to take their toll, as Silicon Valley Bank Financial is in talks to sell itself, according to a report from CNBC.
The news comes after two days of falling prices, and previous reports of concern within the banking industry. Specifically, worries “that more banks would incur heavy losses on their bond portfolios.” Following shares fell 62% in trading today before it was halted.
CNBC previously reported that the potential collapse sparked concern from many in the sector. “Concern among founders and venture capital investors spiked earlier this week,” a report stated. Additionally noting SVB, “surprised the market by announcing late Wednesday it needed to raise $2.25 billion in stock.”
To this point, the bank has been unable to raise the necessary funds. Subsequently, SVB Financial is seeking a sale. Conversely, CNBC noted that, despite its current state, “Large financial institutions are looking at a potential purchase of SVB.” Alternatively, there has been no update as to who could be interested.