The dust is still settling following the collapse of Silicon Valley Bank (NASDAQ:SIVB). While greater clarity may arise next week, clients of the bank are scrambling to figure out what they have and what they may not hold.
Following the market close, LendingClub (NYSE:LC), a federally chartered digital bank, issued a brief statement regarding SVB, indicating it had minimal exposure to the bank.
“On March 10, 2023, Silicon Valley Bank (“SVB”) was put under control of the Federal Deposit Insurance Corporation (the “FDIC”). LendingClub Corporation (the “Company”) is a bank holding company with $8 billion of total assets as of February 28, 2023. LendingClub’s relationship with SVB is limited to funds on deposit of $21 million, which amount is not material to the Company’s liquidity position or capital levels, and does not pose a risk to the Company’s ongoing business or operations. The recovery of the funds will be subject to the FDIC process.”
Many west coast private firms, as well as some public companies, utilized the bank, so you can expect more revelations in the coming days as to how little or how much is at risk for various firms – including Fintechs. Y Combinator CEO was on CNBC today predicting that some impacted firms, which are well known names, may not recover adding that hundreds of the VCs portfolio firms have been impacted. This is only the beginning.