Regulators may still try to find a buyer for Silicon Valley Bank, source says
Prospects wait in line outdoors of a Silicon Valley Financial institution department in Wellesley, Massachusetts, US, on Monday, March 13, 2023.
Sophie Park | Bloomberg | Getty Pictures
Regulators might make a second try to promote collapsed Silicon Valley Financial institution after the public sale over the weekend led nowhere, in line with a senior Treasury official.
There’s nonetheless a possibility to promote Silicon Valley Financial institution, in line with the official, saying that is not off the desk.
The Federal Deposit Insurance coverage Corp. struggled to discover a purchaser for the failed financial institution’s property through the weekend. CNBC beforehand reported that PNC, which expressed curiosity initially, determined to not place an official bid after conducting due diligence.
The Wall Road Journal first reported that regulators are planning a second public sale, citing individuals conversant in the matter.
The collapse over the previous a number of days of Silicon Valley Financial institution and Signature Financial institution — the second- and third-largest financial institution failures in U.S. historical past — are worrying many who there could possibly be a contagion impact within the broader banking system.
On Sunday night, the Federal Reserve, FDIC and Treasury Division introduced a plan to ensure the uninsured depositors at SVB and Signature. The Fed additionally introduced a further funding facility for troubled banks.