• The U.S. Federal Deposit Insurance Corporation (FDIC) has begun an auction process to sell the assets of Silicon Valley Bank (SVB).
• Final bids are due by Sunday afternoon, and the FDIC is working quickly to close the deal before branches open on Monday.
• Many tech investors have called for a federal bailout, but Treasury secretary Janet Yellen has maintained that the system is „resilient“.
Silicon Valley Bank Under FDIC Auction
The U.S. Federal Deposit Insurance Corporation (FDIC) began an auction process for Silicon Valley Bank (SVB) late Saturday night, according to reports. Final bids are due by Sunday afternoon. Unnamed sources indicate that the FDIC is seeking to close the deal promptly after California regulators closed the bank and placed it into FDIC receivership on Friday.
Bailout Calls Grow
The failure of SVB has sparked a significant debate over whether the bank will receive a bailout. However, based on statements from U.S. Treasury secretary Janet Yellen, it appears that a bailout is not being considered despite calls from many tech founders and venture capitalists, including Galaxy Digital’s Mike Novogratz, Y Combinator’s Garry Tan, and Craft Ventures‘ David Sacks. Billionaire Bill Ackman has warned of „more bank runs“ by Monday if action is not taken in response to this situation. Hundreds of venture capitalists and funds in the U.S. and the U.K., however, have expressed their hope that SVB will be „appropriately capitalized.“
The collapse of Silicon Valley Bank (SVB) has caused a significant stir in the United States as many believe it has revealed a weakness in the U.S banking system despite Secretary Yellen’s assurance that it remains “resilient” and “safe and well-capitalized” .
Quick Response from FDIC
Anonymous sources cited by Bloomberg say the FDIC is working swiftly to sell off SVB assets before branches open on Monday with final bids due by Sunday afternoon with a possible announcement made later Sunday evening according to Bloomberg contributor Matthew Monks who attempted to contact them outside of their normal business hours but was unable get any comment or response..
While some have called for federal bailouts for Silicon Valley Bank (SVB), US Treasury Secretary Janet Yellen maintains that US banking systems remain resilient enough without one despite concerns about its sudden collapse revealing weaknesses in US banking systems . The FDIC is responding quickly however with an auction beginning Saturday night with final bids due in by Sunday afternoon possibly closing this matter before branches open again on Monday