Canadian regulator takes temporary control of Silicon Valley Bank's Canadian branch (updated)
12/03/2023 22:11
(Adds details, background)
March 12 (Reuters) -
A Canadian regulator on Sunday said it sought temporary
control of Silicon Valley Bank's SIVB.O Canadian branch, as
the fallout from the collapsed U.S. startup-focused lender
reverberated around the world.
The Office of the Superintendent of Financial Institutions
(OSFI) said it plans to gain permanent possession of SVB's
Canadian unit's assets, adding that it is asking the attorney
general of Canada to petition for a winding-up order.
"The Superintendent took this action to preserve the
value of the assets held at the branch in light of the decision
by the California Department of Financial Protection and
Innovation to shut down Silicon Valley Bank located in Santa
Clara, California," OSFI said in a statement.
U.S. authorities were preparing "material action" on
Sunday to shore up deposits in Silicon Valley Bank and try to
stem any broader financial fallout from the bank's sudden
collapse,
sources familiar with the matter told Reuters
.
According to a
Bloomberg report
, the failure of SVB Financial Group dealt another blow to
Canadian advertising-tech firm AcuityAds Holdings Inc AT.TO ,
which revealed that almost all of its cash is held at the
now-insolvent bank.
(Reporting by Akriti Sharma in Bengaluru; editing by Diane
Craft and Leslie Adler)
((Akriti.Sharma@thomsonreuters.com;))