Financial regulators are discussing two difference facilities to manage the fallout from the Silicon Valley Bank collapse if no buyer ‘wins’ the auction on Sunday.
FDIC auction was underway on Sunday for Silicon Valley Bank.
The final bids are due on Sunday.
“The Federal Deposit Insurance Corp. kicked off an auction process late Saturday night for Silicon Valley Bank, with final bids due by Sunday afternoon, according to people familiar with the matter,” Bloomberg News reported.
The ‘winner’ of the auction may not be known until late Sunday.
A deal may not even be reached.
Financial regulators are discussing two different facilities to manage fallout from SVB no buyer materializes.
BREAKING: Financial regulators are discussing two different facilities to manage the fallout from the closure of Silicon Valley Bank if no buyer materializes, according to a source close to the situation.
— Genevieve Roch-Decter, CFA (@GRDecter) March 12, 2023
Treasury Secretary Janet Yellen on Sunday said there would be no federal government bailout of Silicon Valley Bank.
Yellen told CBS’s “Face the Nation” viewers, “we are concerned about depositors and are focused on trying to meet their needs.”
The FDIC and Treasury are discussing options for uninsured accounts over the $250,000 threshold, NBC reported.