RBC, PNC Financial Group Withdraw from Talks to Pursue Bids on Silicon Valley Bank

Royal Bank of Canada (RBC) and PNC Financial Group both showed interest in bidding on Silicon Valley Bank on Sunday, however things changed after regulators showed interest in bidding on the insolvent financial institution.

FDIC auction was underway on Sunday for Silicon Valley Bank.

The final bids were due on Sunday afternoon.

RBC and PNC Financial Group backed out of talks to bid on Silicon Valley bank as regulators sought bids.

According to Reuters, PNC Financial Group studied two bids – one to purchase Silicon Valley Bank in its entirety and a second bid to purchase parts of the failed bank.

PNC eventually withdrew from all discussions.

RBC likely backed out of pursuing a bid for Silicon Valley Bank over concerns it would not be able to justify the deal to regulators in Canada, Reuters reported.

Financial regulators are discussing two different facilities to manage fallout from SVB no buyer materializes.

Reuters reported:

Interest from two early suitors for Silicon Valley Bank (SIVB.O) – PNC Financial Group Inc (PNC.N) and Royal Bank of Canada (RY.TO) – had cooled on Sunday, as U.S. regulators invited bids for the failed lender, according to sources familiar with the matter.

PNC, one of the 10 largest U.S. banks by assets, wanted to pursue a bid for the entirety of Silicon Valley Bank, one of the sources added, but then studied a bid for parts of Silicon Valley Bank. A separate source familiar with the matter said PNC had decided to withdraw from any further talks.

RBC also explored a takeover of Silicon Valley Bank but it was unlikely to pursue it, three sources said. One of the sources added that RBC has struggled to get comfortable with the risks involved and the complexities of justifying the deal to regulators in its home country of Canada. RBC bought City National Bank in 2015. It is the eighth largest bank by deposits in California, according to FDIC data.

Treasury Secretary Janet Yellen on Sunday said there would be no federal government bailout of Silicon Valley Bank.

As TGP’s Kristinn Taylor reported earlier, the Treasury Department announced in a joint statement Sunday evening with the Federal Reserve and FDIC that all deposits at Silicon Valley bank will be made available on Monday.

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Cristina began writing for The Gateway Pundit in 2016 and she is now the Associate Editor.

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