SBNY - SVB's bid window extended amid 'substantial interest' from potential buyers

2023-03-20 12:57:00 ET

After getting "substantial interest" from multiple potential buyers, the Federal Deposit Insurance Corporation said it extended the bidding process for Silicon Valley Bank, the part of SVB Financial ( NASDAQ: SIVB ) that fell into FDIC receivership earlier this month, according to a Monday release.

In order to simplify the process and expand the pool of potential bidders, the banking regulator will allow parties to submit offers for Silicon Valley Bridge Bank, N.A., and its subsidiary Silicon Valley Private Bank.

The bridge bank was formed last week by the FDIC to take receivership of SVB's assets and liabilities, ultimately to "stabilize the institution and market the franchise," the agency said in a statement.

Insured banks as well as banks with nonbank affiliates will be able to submit whole-bank bids, or they can bid on deposits or assets, the FDIC noted, adding that they "will be permitted to bid on the asset portfolios."

Offers for Silicon Valley Private Bank are due by 8:00 p.m. ET Wednesday, and for Silicon Valley Bridge Bank by the same time Friday.

The extension comes after the Financial Times reported on Friday that the FDIC is now open to discuss shouldering losses at both SVB and Signature Bank ( SBNY ).

More on the Bank Crisis

• SVB Financial cut off from records due to FDIC takeover of bank
• Bankrupt SVB Financial Doesn't Seem Insolvent, Some Investors Could Get Meaningful Recoveries
• Biopharma Exposure In SVB Financial Group And Investor Strategy
• Fed, ECB and four other central banks take 'coordinated action' to ensure dollar liquidity
• Silicon Valley Bank was a hedge fund 'in drag,' consultant says

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