The Federal Deposit Insurance Corp. (FDIC) is seeing “substantial interest” in Silicon Valley Bank.
The regulator said Monday (March 20) that it has extended the bidding process, that it will allow the submission of separate bids for two entities and that it is seeking bids for Silicon Valley Private Bank on Wednesday and for Silicon Valley Bridge Bank, N.A. on Friday.
“There has been substantial interest from multiple parties, and the FDIC and the bidders need more time to explore all options in order to maximize value and achieve an optimal outcome,” the FDIC said in a Monday press release announcing the changes.
The regulator added in the press release that allowing separate bids for the two entities will “help simplify the bidding process and expand the pool of potential bidders.”
Bids on the whole bank or on the deposits or assets of the institutions will be accepted from qualified, insured banks and qualified, insured banks in alliance with non-bank partners, while bids on the asset portfolios will be accepted from bank and non-bank financial firms, according to the press release.
This announcement comes on the same day on which it was reported that First Citizens Bank — which has bought 20 failed banks over the last 14 years — has submitted an offer to buy Silicon Valley Bank and may also participate in this week’s auctions for the bank and its Private Bank subsidiary.
There’s no certainty the bank or any other bidder will reach a deal with the FDIC to acquire SVB, Bloomberg added in its Monday report, which cited unnamed sources.
While the bidding process is underway, Silicon Valley Bridge Bank continues to operate as a nationally chartered bank, allowing depositors full access to all of their money and performing its obligations under contracts with vendors and counterparties, the press release said.
On Tuesday (March 14), Silicon Valley Bridge Bank CEO Tim Mayopoulos said that the bank is open for business and actively opening new accounts.
The bank is working to rebuild, win back customers’ confidence and “continue supporting the innovation economy,” Mayopoulos said in the March 14 update posted on the bank’s website.