According to a statement released on Wednesday, US Federal Deposit Insurance Corporation (FDIC)bad creditors Silicon Valley Bank And Signature Bank from banks that want to buy to March 17 asked them to bid.
US Regulator Examines Friday’s Offers for FDIC, SVB, and Signature Bank
The new auctions are how the FDIC aligns to lure lenders back to the private sector in a week of resounding turmoil in the global financial system after regulators took over Silicon Valley Bank (SVB) last Friday and Signature Bank (SBNY.O) on Sunday. It shows you are making an effort.
This will be the FDIC’s second attempt to sell the SVB after its failed effort on Sunday. Sources said the US Federal Deposit Insurance Corporation has commissioned investment bank Piper Sandler Companies (PIPR.N) to arrange a new auction.
Two of the sources said the US Federal Deposit Insurance Corporation is aiming to sell all of SVB and Signature, but offers may be considered for parts of the banks if the entire company cannot be sold.
According to two sources, only bidders with existing bank contracts will be allowed to review banks’ financial statements before submitting their bids, which aims to give traditional lenders an advantage over private equity firms.
US President Joe Biden said US taxpayers won’t bear the cost of bailing out SVB and Signature because any capital shortfalls will be covered by a government fund that could put a lien on other banks.
But a successful sale will help minimize such gaps.
*Not investment advice.
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