FDIC Fails to Attract Buyers for SVB, Prepares to Relaunch Auction
The Federal Deposit Insurance Corp (FDIC), which took over collapsed Silicon Valley Bank earlier this month, has failed to find a suitable buyer for the tech-focused lender, and is planning to relaunch the sale process in a desperate bid abdicate the receivership.
According to people familiar with the matter cited by Reuters, the FDIC is going to relaunch the auction process for SVB, after failing to secure a buyer in the first sale process. The FDIC, which is responsible for managing bank receiverships and insuring deposits, is also considering splitting up the collapsed the lender and then selling the subsequent businesses separately.
The people told Reuters that the FDIC is currently mulling an auction of SVB’s wealth-focused private bank, scheduling the due date for bids as Wednesday. Likewise, the insurance corporation is also inviting potential buyers for SVB’s depository bank— responsible for the lender’s consumer deposits, to place separate bids by Friday.
Information for this briefing was found via Reuters and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.