With the shocking collapse of US-based Silicon Valley Bank (SVB) on March 10, concerns are being raised by financial industry executives that it could hit others if regulators fail to find a buyer to protect uninsured deposits over the weekend. There could be a major impact on US regional banks. , informed of reuters On 12 March.
As per the details, the start-up lender is the biggest bank to fail since the 2008 financial crisis. This failure has not only shaken the markets, but has left billions of dollars of companies and investors stranded.
To bail the lender out of financial trouble, the Federal Deposit Insurance Corporation (FDIC) has been appointed receiver and over the weekend was trying to find another bank willing to merge with the Silicon Valley bank.
view tech 64 Cash holding in SVB:
Meanwhile, on March 12 digital gaming and sports platform Nazara Technologies said its stepped-down subsidiaries – Kiddopia Inc and Mediawrkz Inc – hold cash balances in SVB. The details say, the balances held by subsidiaries in SVBs are cumulatively approx. 64 crores ($7.75 million).
Both are owned by Nazara, Kidopia Inc (51.5% stake) is a subsidiary of Paper Boat Apps Pvt Ltd, while Mediaworx Inc (33% stake) is a subsidiary of Dataworx Business Solutions Pvt Ltd.
“The FDIC has said it will issue an upfront dividend to depositors within the next week, with future payments being a sale of assets. Regardless of the final outcome and its timing, both subsidiaries are well capitalized and generating positive cash flows.” profitability. Therefore, we expect no impact on their day-to-day operations, business performance and growth plans due to the SVB incident,” Nazara said in the filing.
In addition, the company said that the group continues to maintain healthy reserves of cash and cash equivalents. 600 crores excluding SVB affected funds.
List of potential buyers:
SVB’s financial health took a turn this week after the bank announced plans to raise up to $1.75 billion with the aim of strengthening its capital position.
On the list of potential buyers, the Santa Clara, California-based lender – with $209 billion in assets – could seal a deal in a relatively short weekend, the report said.
Meanwhile, both the US Federal Reserve and the FDIC were considering the creation of a fund that would allow regulators to backstop more deposits in banks that are in trouble, Bloomberg informed of.
Also, to deal with this situation, the White House said on Saturday that President Joe Biden had talked to California Governor Gavin Newsom about the bank.
Banks on the potential list of buyers include Signature Bank, First Republic Bank, PacWest Bank, Charles Schwab and Western Alliance Bank. Although nothing has been confirmed yet.
With agency inputs.
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