History
SVB Financial was founded as Silicon Valley Bancshares on April 23, 1982, by Bill Biggerstaff and Robert Medearis over a poker game.[12][13] Silicon Valley Bank was incorporated as a wholly owned subsidiary in October 17, 1983.[1]
In 1988, the company went public via an initial public offering, raising $6 million.[14]
The company's stock price soared through the dot-com bubble but fell 50% when the bubble burst.[15] The company reincorporated as a Delaware corporation in 1999.[3][16] Ken Wilcox became CEO in 2000.[17]
In 2001, the company's investment banking arm, SVB Securities, expanded its business with a $100 million acquisition of Palo Alto Alliant Partners, which was rebranded SVB Alliant.[18] In 2002, it formally entered the private banking business, building on prior experience and relationships with wealthy venture capitalists and entrepreneurs.[19]
On May 31, 2005, Silicon Valley Bankshares rebranded as SVB Financial Group, signaling the company's diversification away from commercial banking.[20] SVB Alliant ceased operations in 2007.[21]
In December 2008, SVB Financial received a $235 million investment from the U.S. Treasury through the Troubled Asset Relief Program.[22] The U.S. Treasury received $10 million in dividends from SVB Financial and, in December 2009, the company repurchased the outstanding stock and warrants held by the government, funding this through a stock sale of $300 million.[23]
In 2015, CEO Greg Becker indicated that SVB had yet to make immediate plans to re-enter the investment banking sector as it had before 2006.[24]
In January 2019, SVB Financial acquired Leerink Partners LLC, and renamed the business SVB Leerink.[25] In 2021, SVB acquired Boston Private Financial Holdings and merged its subsidiary Boston Private Bank & Trust Company into Silicon Valley Bank and SVB Private.[26] In 2021, SVB acquired media and telecom research company MoffettNathanson LLC.[27] In February 2022, SVB Leerink was rebranded as SVB Securities.[28]
In August 2024, SVB Financial Group received a U.S. judge's permission to turn over its assets to creditors and end its bankruptcy.[29] As part of its bankruptcy restructuring, SVB Financial sold various assets, spinning off its venture capital business and investment banking unit.[30]
Collapse of Silicon Valley Bank
In March 2023, Silicon Valley Bank experienced a bank run and collapsed. Then Federal Reserve Board Vice Chair for Supervision Michael Barr reported its customers tried to withdraw 81% of its deposits ($142 billion of a $175 billion total, as of the end of 2022) over two days.[31] The failure of Silicon Valley Bank was the largest of any bank since the 2008 financial crisis by assets, and the second-largest in U.S. history behind that of Washington Mutual.[32]
On March 10, 2023, the California Department of Financial Protection and Innovation closed SVB, Santa Clara, and appointed the FDIC as receiver,[33] which transferred all the bank's assets to a newly established bridge bank.[34]
