FDIC bidding for Silicon Valley Bank is in progress: Report
The United States Federal Deposit Insurance Corporation (FIDC) started an auction process on March 11 night for Silicon Valley Bank, Bloomberg reported citing unnamed sources. Bids are allegedly open for just a few hours, before the process closes later this Sunday.
According to Bloomberg sources, the FDIC is seeking a buyer for the California bank over the weekend, ahead of the markets open on March 13. However, a final decision has not been made, and a deal may not be reached.
Earlier today, the U.S. Treasury Secretary Janet Yellen said during an interview that she is working with regulators to address the Silicon Valley Bank collapse and protect investors, but is not considering a major bailout. She noted that regulators "want to make sure that the troubles that exist at one bank don't create contagion to others that are sound.”
Trading platform in bankruptcy cases Cherokee Acquisition told the Financial Times that some clients are offered between 55 cents and 65 cents per dollar for their unsecured deposits. A second source said other customers received offers of 70 to 75 cents per dollar for deposits held at the bank.
This is a developing story, and further information will be added as it becomes available.