Posted on 03/20/2023 8:09:51 PM PDT by george76
The Federal Deposit Insurance Corporation on Monday decided to break up Silicon Valley Bank (SVB) and hold two separate auctions for its traditional deposits unit and its private bank after failing to find a buyer for the failed lender last week.
It will seek bids for Silicon Valley Private Bank until March 22 and for the bridge bank until March 24. The private bank, which is housed within SVB's retail operations, caters to high net-worth individuals.
Bank and non-bank financial firms will be allowed to bid on the asset portfolios, the regulator said.
...
First Citizens said in a statement it "does not comment on market rumors or speculation."
Last week, sources told Reuters that the FDIC was planning to relaunch the sale process for SVB, with the regulator seeking a potential break-up of the failed lender.
The parent company of the lender SVB Financial Group had on Friday filed for a reorganization under Chapter 11 bankruptcy protection and sought buyers for its assets after steps to shore up investor confidence failed. The FDIC, which insures deposits and manages receiverships, had informed banks mulling offers in the auctions for SVB and Signature Bank that it was considering retaining some of the assets that are underwater.
Reuters reported on Sunday that the efforts of some U.S. regional banks to raise capital and allay fears about their health are running up against concerns from potential buyers and investors about looming losses in their assets.
The run on the bank was sparked by balance-sheet concerns after the lender sold a portfolio of treasuries and mortgage-backed securities to Goldman Sachs at a $1.8 billion loss and then attempted to plug that hole through a $2.25 billion fundraising.
(Excerpt) Read more at dailymail.co.uk ...
They will get down to selling individual loans, if needed.
Bay Area rich democrats had their deposits in that bank, and then pulled them out. Makes one wonder if there was some serious illegal activity going on?
My best guess is that's the most likely case.
The bank I work for (Tier-1) was "invited" to help backstop SVB.
We politely declined.
Clients that left us three years ago for SVB are banging down our door to get re-onboarded to our systems and FTE's that left us for SVB are asking to return.
The clients we're taking. The FTE's, not. We cut loose more than 700 contractors and almost 250 FTE's the week before SVB failed. and have a hiring freeze in place.
Wonder how many Chinese government operations at SVB were bailed out before Americans?
Just one guy on Silicon Valley Bank’s board knew anything about banking.. others were woke Democrats..
Foreign companies are supposed to be paid last but will not be I’m this case. At least 1/3rd of depositors were Chinese/Chinese companies and many were connected with the CCP.
I’m sure after a 2 year long senate investigation, they will blame it on Trump
I still say there is CRYPTO activity at the core of their operations.
How many public pension funds...?
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