FDIC Extends Bidding Process for Silicon Valley Bridge Bank
The FDIC extended the bidding process for Silicon Valley Bridge Bank, N.A. in order to "maximize value and achieve an optimal outcome" following "substantial interest from multiple parties."
The FDIC created Silicon Valley Bridge Bank on March 13, which continues to operate as a nationally chartered bank (see previous coverage). The FDIC stated that it will permit parties to put forth separate bids for Silicon Valley Bridge Bank (due by March 24) and its subsidiary Silicon Valley Private Bank (due by March 22) to "simplify the bidding process and expand the pool of potential bidders."
Eligible bidders for whole-bank bids or bids on the deposits or assets include (i) qualified, insured banks, and (ii) qualified, insured banks in alliance with nonbank partners. The FDIC stated that non bank financial firms will be allowed to bid on the asset portfolios of the two institutions.
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In a joint statement, the U.S. Treasury, the FDIC and the Federal Reserve Board announced that all depositors, both insured and uninsured, of Silicon Valley Bank and Signature Bank, would be made whole for their deposits.
