SVB's German Branch Ordered to Halt Transactions by Regulator
March 13 2023 - 07:23AM
Dow Jones News
By Ed Frankl
Germany's financial regulator, Bafin, on Monday issued a
moratorium prohibiting the German arm of Silicon Valley Bank from
sales and payments due to the danger it won't fulfill its
obligations toward creditors.
Bafin said it also ordered the bank to close customer
transactions for the German business, called Silicon Valley Bank
Germany Branch, to secure the bank's assets in an orderly
process.
However, the German branch doesn't pose a threat to financial
stability and has "no systemic relevance," it said.
Santa Clara, Calif.-based SVB was placed under the control of
the U.S. Federal Deposit Insurance Corp. on Friday, after a bank
run scuttled the lender's plans to raise fresh capital.
Banking stocks in Europe are down sharply on Monday, with
Deutsche Bank AG down 6.7% and Commerzbank falling 12% at 1040
GMT.
Bafin's measures are in effect until further developments are
clarified with the branch's parent company at the FDIC, it
said.
The German branch, based in Frankfurt, had total assets of 789.2
million ($839.8 million) at the end of 2022, according to
Bafin.
Write to Ed Frankl at edward.frankl@wsj.com
(END) Dow Jones Newswires
March 13, 2023 07:08 ET (11:08 GMT)
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