The fallout from the collapse of Silicon Valley Bank — the 16th largest bank in the country up until Friday — is only just beginning and while pundits and scribes at better publications than this one dutifully debate why it happened and what comes next, we’re here to point out the hilarious resume of SVB Securities Chief Administrative Officer Joseph Gentile:
It’s worth noting — and in case you weren’t going to note it yourself, there’s a press release to note it for you — that SVB Securities was acquired in January 2019 by SVB Financial Group, the parent of Silicon Valley Bank, and has since “maintained its financial and operational independence and has operated largely autonomously as a standalone subsidiary.” So while it’s not directly in the eye of the shitstorm, it is part of the same landfill as the bank’s dumpster fire. The press release included a statement from SVB Securities CEO Jeff Leerink assuring clients and any lurking regulators that despite what happened to the bank, it’s business at usual at his unit: “We understand that the receivership of Silicon Valley Bank has caused concern among our clients and stakeholders. We want to assure you that SVB Securities is financially stable and will continue to operate as usual. We remain committed to providing the same level of high-quality products and services that our clients have come to expect from us.”
According to a news release SVB Financial Group pushed out today, they are exploring “strategic alternatives” for the subsidiaries (so, a sale):
SVB Financial Group (“SVBFG”) (NASDAQ: SIVB) announced today that its Board of Directors has appointed a restructuring committee consisting of five independent directors to explore strategic alternatives for the holding company and its SVB Capital and SVB Securities businesses, as well as its other assets and investments. Both of these businesses are separate divisions of SVBFG and not part of Silicon Valley Bank, which is undergoing resolution under the jurisdiction of the Federal Deposit Insurance Corporation (“FDIC”) and Federal Reserve.
SVB Securities has a strong client base and solid financial position, with a healthy balance sheet, significant excess net regulatory capital, and no outstanding debt, the release said. It advised on about $9 billion in M&A transactions last year, and had had a loss of $95 million on revenue of about $508 million in 2022, said Bloomberg. Bloomberg also reported on Saturday that Leerink and his team are seeking help to finance a potential management buyout of the business, as told to Bloomberg by a source that did not want to be identified.
Just wanted to clear things up since we’re all memeing this guy and laughing at him today. You can still laugh and point anyway.
Earlier:
KPMG has served as SVB auditor since 1994. Per Part II, Item 8 “Report of Independent Registered Public Accounting Firm” (SEC EDGAR link), KPMG issued an unqualified opinion two weeks before the bank failed.
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