The Federal Deposit Insurance Corporation (FDIC) plans to try and auction off the collapsed Silicon Valley Bank (SVB) for a second time, according to the Wall Street Journal, after the first attempt failed on Sunday.
After being unable to find a suiter for the failed Silicon Valley Bank on Sunday, there will be another attempt to auction it off, the Journal reported after speaking to people familiar with the matter. However, it is currently unclear when the second auction will be.
The news comes after the officials from the FDIC told Senate Republicans Monday that there would be additional flexibility to selling it off after it was declared a threat to the financial system, according to people familiar with the briefing, which showed notes to the Journal.
Silicon Valley Bank collapsed last week when panicked customers suddenly withdrew tens of billions of dollars after the bank announced a loss of approximately $1.8 billion from selling its investments in U.S. treasuries and mortgage-backed securities. Ultimately, regulators shut Silicon Valley Bank down, and the Federal Deposit Insurance Corporation (FDIC) took control of the bank and said they would protect insured deposits.
On Sunday, the U.S. Treasury, the Federal Reserve, and the FDIC announced that they would be taking “decisive actions to protect the U.S. economy by strengthening public confidence in [the U.S.] banking system” by effectively making deposits above the FDIC’s $250,000 limit available on Monday.
Before joining the Silicon Valley Bank as the Chief Administrative Officer (CAO) in 2007, Joseph Gentile served as the Chief Financial Officer (CFO) at Lehman Brothers’ Global Investment Bank before the public collapse in 2008. https://t.co/hfTtEru0E4
— Breitbart News (@BreitbartNews) March 13, 2023
Additionally, on Sunday, Silicon Valley Bank failed to be auctioned off after none of the largest U.S. banks bid. But, according to the report, officials told lawmakers Monday that only there was at least one bid made for the bank, but the FDIC declined the offer.
“By declaring the firm systemic, regulators have more flexibility to cover all depositors at the failed bank, including those with deposits above a typical $250,000 insurance cap,” the Journal noted. “The move also gives regulators the ability to offer would-be buyers deal sweeteners such as loss-sharing agreements, according to former regulators.”
Jacob Bliss is a reporter for Breitbart News. Write to him at [email protected] or follow him on Twitter @JacobMBliss.