JPMorgan in Talks to Acquire SVB Financial Group, Excluding U.S.-Controlled Silicon Valley Bank

Today, on March 13th, 2023, JPMorgan Chase & Co is reportedly in talks to acquire SVB Financial Group, with the exception of its commercial banking unit, Silicon Valley Bank. This deal would exclude the unit which is currently under U.S. control, as reported by Axios.

In addition to JPMorgan, PNC Financial Services Group Inc, Apollo Management, and Morgan Stanley are also in talks with the defunct lender, according to Axios. Apollo is reportedly interested in financing a deal or acquiring some of the business.

A spokesperson from PNC confirmed that they are “not in talks to acquire SVB Financial or Silicon Valley Bank,” while the other companies did not provide a comment.

This news comes after reports from Reuters on March 12th, which stated that Silicon Valley Bank had received interest from PNC and Royal Bank of Canada but cooled off as U.S. regulators opened up bids for the failed lender. The U.S. Federal Deposit Insurance Corporation (FDIC) had given a Sunday afternoon deadline for bids for the failed Silicon Valley Bank.

Although the current situation does share similarities with 2008 and bank failures like that of Washington Mutual, this news highlights the continued consolidation and acquisition trend in the financial industry. While the global financial crisis of 2008 was characterized by a wave of bank failures and bailouts, today’s situation shows how larger banks are expanding their reach and seeking opportunities for growth and acquisition. Additionally, this news underscores the role of regulators in overseeing failed lenders and ensuring that any potential deals are in the best interest of all parties involved.