FDIC to Hold Another Auction of Silicon Valley Bank Assets

Following the recent collapse of Silicon Valley Bank (SVB), the Federal Deposit Insurance Corporation (FDIC) is reportedly mulling a second auction for shuttered Silicon Valley Bank, after the first round of bidding over the weekend. This comes as the FDIC aims for a swift deal for the assets of Silicon Valley Bank.

WASHINGTON—Regulators are planning to take another crack at auctioning failed Silicon Valley Bank, according to people familiar with the matter, after they initially struggled to find a single buyer.

To maximize the potential recovery of deposits and minimize the impact on the banking system, The Federal Deposit Insurance Corporation (FDIC) has decided to break up the commercial bank, and will hold two auctions to sell both SVB’s traditional deposits unit and its more specialized assets. The Federal Insurance Deposit Corporation on Monday decided to break up Silicon Valley Bank (SVB) and hold two separate auctions for its traditional deposits unit and other divisions.

The FDIC is committed to finding the best possible solution. The bidding process for the successor of Silicon Valley Bank is being extended by the Federal Deposit Insurance Corp. to give more time to work out a potential agreement. Stay tuned for further updates on the auction process and the future of Silicon Valley Bank's assets.