SecondMarket’s Answer to Post-Facebook Life

There’s been plenty of speculation about what SecondMarket will do after the Facebook IPO. After all, it accounts for a hefty portion of the private secondary market’s revenues. And, the situation is made worse by the fact that it has already lost private trading in other high-profile stocks that went public, including Pandora, LinkedIn and Groupon.

Barry Silbert, the CEO of SecondMarket, has been on the receiving end of countless questions about the company’s post-Facebook strategy, and it came up (unsurprisingly) at SecondMarket’s Capitalyze conference a couple of days ago.

Well, it looks like the answer was revealed yesterday.

According to Felix Salmon, SecondMarket is moving into the community banking space. Specifically, privately held community banks will be able to trade their shares on the platform. Salmon notes that this ‘can’t possibly be bad and might well be very good for the industry.’ Simply put, some much-needed liquidity will be brought to a market that definitely needs it.

The WSJ reports: ‘There are more than 7,000 banks in the country and many analysts expect consolidation to happen in the coming years as new regulations make it more expensive for smaller banks to operate.’ There’s a pretty big market here, and SecondMarket is poised to take advantage of it. The program is set to be started in Texas, New York, New Jersey and Pennsylvania.

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Sources: Reuters, WSJ

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