Bloomberg has reported that a Federal Deposit Insurance Corp. (FDIC) auction for Silicon Valley Bank is underway. Moreover, the process started Saturday night, with the final bids for the financial institution due on Sunday afternoon.
The report states that the FDIC is “aiming for a swift deal,” but may not know the winning bid until late Sunday evening. Conversely, the report ensured that there remains the possibility that no deal could be reached at all, according to the publication’s sources.
SVB Auction Underway
A sudden and unexpected collapse shook the financial sector, as SVB Financial closed late last week. Subsequently, the bank represents what is the largest closure since the financial crisis of 2008, and has both the US and UK governments seeking to aid companies that are undoubtedly affected.
Now, Bloomberg has reported that an FDIC auction for Silicon Valley Bank is officially underway. Moreover, final bids for the financial institution are expected to be in no later than Sunday afternoon, with a decision being made that evening.
The FDIC is seeking a swift end to the auction process, with a winner not expected to be announced until late Sunday evening according to sources. Additionally, there has been no final deal, with the reports assuring that the deal not being reached is very much a possibility.
There has been no comment made by FDIC representatives, according to the same report. Conversely, Silicon Valley Bank was closed on Friday and sent into FDIC receivership. Moreover, it is noted for its customer base of tech startups, all of which could be affected by significant exposure.