The Federal Deposit Insurance Corp. began an auction process for Silicon Valley Bank late Saturday, with final bids due Sunday afternoon, according to people familiar with the matter.
The FDIC is seeking a quick deal, but a winner may not be known until late Sunday, according to one person who asked not to be identified because the case is not public. A final decision has not yet been made and an agreement may not be reached, the people said.
FDIC officials did not immediately respond to requests for comment outside of regular business hours.
Silicon Valley Bank collapsed into FDIC receivership on Friday after a longtime tech startup’s customer base began to worry and withdraw deposits. At the end of last year, SVB had more than $175 billion in deposits — the vast majority of which are uninsured — and $209 billion in total assets.
The FDIC now wants to sell assets and make some of customers’ uninsured deposits available as early as Monday, people with knowledge of the situation said. The agency said it will make 100% of protected deposits available Monday when Silicon Valley Bank branches reopen.
Bloomberg contributor Ben Bain contributed to this report.
Source: LA Times
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
