The U.S. Federal Deposit Insurance Corporation (FDIC) launched an auction process for Silicon Valley Bank (SVB) late Saturday night, according to reports. Final bids are due Sunday afternoon. Unnamed sources say the FDIC is looking to complete the deal quickly after California regulators shut down the bank and placed it in receivership on Friday.
Sources say the FDIC is working quickly to sell SVB’s assets as final offers are due by Sunday afternoon
The collapse of Silicon Valley Bank (SVB) caused a big stir in the United States, as many believe it exposed a weakness in the US banking system. However, US Treasury Secretary Janet Yellen maintained that the system is “resilient” and “safe and well capitalized”. According to a recent Bloomberg reportan auction for SVB started on Saturday evening and final bids will be selected on Sunday.
Unnamed sources cited by Bloomberg say the FDIC is working quickly to sell SVB’s assets before branches open on Monday. The report says final bids are due Sunday afternoon, with the final decision potentially not announced until Sunday evening. Bloomberg contributor Matthew Monks attempted to contact the FDIC for comment, but was unable to reach anyone outside of normal business hours.
SVB’s failure has sparked a major debate over whether the bank will receive a bailout. However, based on Yellen’s statements, it appears that a bailout is not on the cards. Many technology founders and venture capitalists, including Galaxy Digital’s Mike NovogratzY Combinator’s Garry Tanand Craft Ventures’ David Sackscall for a federal bailout.
Billionaire Bill Ackman, CEO of Pershing Square Capital Management, has stressed the need for a bailout, warning “no more bank runs” by 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 capitalized”.
What do you think the future holds for Silicon Valley Bank and the wider US banking industry 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.
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