Silicon Valley Bank collapse: FDIC holding auction for bank, final bids due Sunday
Asher Notheis
Video Embed
The Federal Deposit Insurance Corporation started an auction on late Saturday for Silicon Valley Bank, with all bids due by Sunday afternoon, according to people familiar with the situation.
The FDIC is aiming to complete the deal soon, though the winner may not be known until late Sunday, according to an unidentified person. Additionally, no final decision in this auction has been made, and it is entirely possible that no deal will be reached at all, according to people sourced by Bloomberg.
SILICON VALLEY BANK COLLAPSE: CEO CASHED OUT MILLIONS WHILE EMPLOYEES GOT BONUSES
The auction comes only two days after SVB collapsed on Friday and was taken over by federal regulators. The collapse occurred after SVB revealed that it sold off a trove of securities at a loss and moved to raise capital on Wednesday, igniting panic from venture capital firms and causing a run on the bank.
In the wake of the collapse, the FDIC is working to sell assets and make some of the uninsured deposits from clients available as soon as Monday, which will be when SVB branches reopen, according to people with knowledge of the situation.
Treasury Secretary Janet Yellen seemingly ruled out a federal bailout for SVB on Sunday, insisting that government officials have been scrambling to assist depositors. While some have compared the SVB situation to that of the 2008 financial crisis, Yellen has insisted the two situations are different.
“Let me be clear that during the financial crisis, there were investors and owners of systemic large banks that were bailed out,” Yellen told CBS. “The reforms that have been put in place mean we are not going to do that again.”
CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER
Sen. Mark Warner (D-VA) argued that the best solution for SVB’s collapse would be an acquisition, though he stopped short of ruling out support for a bailout. The Virginia senator underscored the importance of SVB depositors receiving their money back and emphasized the speed with which SVB’s collapse came about.
The Washington Examiner has contacted the FDIC for comment.