SVB's Private Bank Unit Reportedly Eyed By Citizens Financial

Citizens Financial Group Inc CFG is reportedly constructing a bid to purchase the private banking business of Silicon Valley Bank, which collapsed earlier this month.

Citizens, one of the largest U.S. regional banks, is working to submit an offer in the auction of the business, which is called SVB Private, reported Reuters, citing two people familiar with the matter.

Citizens Financial did not immediately respond to Benzinga’s request for comment.

SVB Private provides banking, wealth management and trust services to high-net-worth individuals. A big part of it consists of Boston Private, a wealth manager which was acquired by Silicon Valley Bank in 2021.

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The auction is being handled by the Federal Deposit Insurance Corporation (FDIC), which has scheduled a Friday deadline for offers, the report said. However, no deal is final, it said citing sources.

SVB parent SVB Financial Group had failed to raise enough cash to sustain operations, and the bank was closed by the California Department of Financial Protection and was taken over by the Federal Deposit Insurance Corp.

Sale Attempt: The FDIC had attempted to sell SVB Private alongside Silicon Valley Bank over the last two weekends after the lender was taken over by regulators on March 10.

However, it did not manage to get a deal to sell them both together, the report said. Since then, the FDIC has asked for separate offers.

Citizens Financial has been growing through acquisitions, according to the Reuters report. It finished the purchase of the U.S. East Coast branch network of HSBC Holdings Plc HSBC in February 2022. Two months later, it completed a deal to purchase Investors Bancorp, which added to its presence between New York City and Philadelphia, the report said.

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Posted In: M&ANewsMarketsMediaBanking crisisFDICSilicon Valley BankSVB Private