The US Federal Deposit Insurance Corporation (FDIC) began an auction process for Silicon Valley Bank (SVB) on Saturday night, according to reports. Final bids are due by Sunday afternoon. Anonymous sources indicate that the FDIC is trying to close the deal immediately after California regulators closed the bank and placed it under FDIC receivership on Friday.
Sources say the FDIC is working quickly to sell SVB’s assets as final offers are due Sunday afternoon.
The collapse of Silicon Valley Bank (SVB) has caused quite a stir in the United States, as many believe it has revealed a weakness in the American banking system. However, US Treasury Secretary Janet Yellen has argued that the system is “resilient” and “safe and well capitalized.” According to a recent Bloomberg reportan auction for SVB started on Saturday night and the final bids will be selected on Sunday.
Anonymous sources cited by Bloomberg say the FDIC is working quickly to sell off SVB’s assets before branches open Monday. The report states that final offers are due Sunday afternoon, with the final decision likely not to be announced until Sunday night. Bloomberg contributor Matthew Monks tried to reach the FDIC for comment but was unable to reach anyone outside of normal business hours.
SVB’s bankruptcy has sparked a major debate over whether the bank will receive a bailout. However, based on Yellen’s statements, it appears that a ransom is not being considered. Many tech founders and venture capitalists, including Galaxy Digital mike novogratzand combiner garry tanand Craft Ventures’ david sacksthey are asking for a federal bailout.
Billionaire Bill Ackman, CEO of Pershing Square Capital Management, has stressed the need for a bailout, warning of “more bank runs” for Monday if no action is taken. In response to the situation, hundreds of venture capitalists and funds in the US and UK issued a statement expressing their hope that the bank will be “appropriately capitalised”.
What do you think the future holds for Silicon Valley Bank and the US banking industry in general in light of the ongoing debate over bailouts and potential weaknesses in the system? Share your thoughts on this topic in the comments section below.
image credits: Shutterstock, Pixabay, Wiki Commons, rafapress / Shutterstock.com
Disclaimer: This article is for informational purposes only. It is not a direct offer or a solicitation of an offer to buy or sell, or a recommendation or endorsement of any product, service or company. bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
