2023-03-16 07:12:39 ET
Federal regulators are still in the process of finding a suitor for Silicon Valley Bank (SVB) assets, which collapsed last week after a run on deposits left it insolvent.
The Federal Deposit Insurance Corp. (FDIC) took control of SVB last Friday after its customers, which include many tech startups and venture capital-related companies, started withdrawing deposits over concern about the bank's stability. Days after seizing control, regulators are yet to find a single buyer willing to take on everything.
Biggest potential bidders have shown reluctance to make an offer. Citing sources, The New York Times reported that JPMorgan Chase ( NYSE: JPM ) and Bank of America ( NYSE: BAC ) turned down opportunities to acquire SVB before the bank was seized on Friday.
Bank of America ( BAC ) decided the bank was "not worth taking on," according to unnamed sources. The banking major holds nearly $2T in deposits compared to under $200B held by SVB at the time of collapse.
JPMorgan ( JPM ) also appeared reluctant following its experience during the 2008 financial crisis. The banking giant took over troubled lender Washington Mutual but eventually sued FDIC for unpaid bills.
Goldman Sachs ( NYSE: GS ) has also passed on making an offer as it is still struggling with the aftermath of its own misadventures in consumer banking, one person said.
Earlier, PNC Financial Services ( PNC ) and Royal Bank of Canada ( RY ) had explored bidding for SVB, but later withdrew interests owing to the risks involved.
The latest deadline for bids is Friday evening, but subsequent auctions may follow as all of the bank’s assets are dispersed.
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JPMorgan, Bank of America reluctant to acquire SVB - report