The Federal Deposit Insurance Corporation (FDIC) began the auction process for Silicon Valley Bank (SVB) late Saturday night, according to reports. Final bids are expected by Sunday afternoon. According to unnamed sources, the FDIC is seeking to close the deal as soon as possible because California regulators closed the bank on Friday and placed it into FDIC receivership.
Sources said the FDIC is working quickly to sell the SVB assets, with final bids expected by Sunday afternoon
The collapse of Silicon Valley Bank (SVB) has caused quite a stir in the U.S., as many believe it has revealed weaknesses in the U.S. banking system. However, U.S. Treasury Secretary Janet Yellen has insisted that the system is “resilient” and “safe and well capitalized.” According to a recentBloomberg reportthe SVB auction is scheduled to begin Saturday evening, with final bids on Sunday.
According to anonymous sources cited by Bloomberg, the FDIC is moving quickly to sell SVB’s assets before the branch opens Monday. The final bid will be made by Sunday afternoon and a final decision may not be announced until Sunday evening, according to the report. Bloomberg contributor Matthew Monks tried to reach the FDIC for comment but could not be reached after normal business hours.
SVB’s failure has sparked a great deal of debate over whether the bank will receive a bailout. However, from Yellen’s comments, it appears that a bailout is not being considered. Many tech founders and venture capitalists, including Galaxy Digital’sMike Novogratzof Y CombinatorGarry Tanand Craft Ventures’David Sachsis requesting a federal bailout.
Billionaire Bill Ackman, CEO of Pershing Square Capital Management, has stressed the need for a bailout,warning of “more bank runs” by Mondayunless action is taken. In response to the situation, hundreds of venture capitalists and funds in the U.S. and U.K. have issued statements expressing their hope that the banks will “get adequate capital.”
What are your thoughts on the future of Silicon Valley Bank and the U.S. banking industry as a whole, given the ongoing debate over bailouts and potential weaknesses in the system? Please share your thoughts on this topic in the comments section below.
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