Illustration photo – Silicon Valley Bank sign in Frankfurt on March 13, 2023.
Washington – The American Federal Deposit Insurance Corporation (FDIC) has not found a suitable candidate to take over the bankrupt financial institution Silicon Valley Bank (SVB) in its entirety and is now leaning towards selling it off in parts. Citing sources familiar with the development, Bloomberg reported about it today. It previously said that US banking company First Citizens BancShares was considering a takeover bid for SVB, with one other serious suitor in the game.
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Bids for the takeover of the bank, over which the FDIC has control after its collapse, were originally supposed to be submitted by this morning local time (afternoon CET). Based on them, the FDIC should have decided whether to go the route of selling the entire financial company or dividing it into parts.
According to information from Bloomberg, the regulators are now favoring the second option and are extending the deadline for submitting offers in an attempt to expand the group of interested parties. By Wednesday, according to the media, it will receive proposals regarding the takeover of SVB Private Bank, and until Friday, potential applicants for the so-called bridging bank, which the FDIC established for forced administration of SVB's assets and liabilities, can apply.
The American authorities of SVB closed last week . It was the largest bankruptcy of a financial institution in the US since 2008, at the height of the global financial crisis. Last weekend, the US authorities also took control of the Signature Bank financial institution, which raised concerns on the financial markets about the future development of the banking sector.
SVB lent money mainly to start-up technology companies, so-called start-ups. It calculated the value of assets and liabilities at up to ten billion dollars, liquidity at around USD 2.2 billion. At the end of last year, it had assets worth 209 billion dollars.
