(Bloomberg) -- The Federal Deposit Insurance Corp. extended the bidding process for Silicon Valley Bank after receiving “substantial interest” from multiple potential buyers.
To simplify the process and expand the pool of potential bidders, the FDIC will allow parties to submit separate offers for Silicon Valley Bridge Bank NA and its Silicon Valley Private Bank subsidiary, the regulator said. Both insured banks and banks with nonbank partners will be able to submit offers for all of SVB, or they can bid on deposits or assets.
“There has been substantial interest from multiple parties, and the FDIC and the bidders need more time to explore all options in order to maximize value and achieve an optimal outcome,” the FDIC said in a statement Monday. Bids for Silicon Valley Private Bank are due by 8 p.m. New York time Wednesday, and for Silicon Valley Bridge Bank by the same time Friday.
US regulators were moving toward a breakup solution for Silicon Valley Bank after failing to line up a suitable buyer for the entire company, Bloomberg News reported Sunday, citing people familiar with the matter.
Silicon Valley Bank collapsed into FDIC receivership earlier this month, after its long-established customer base of tech startups grew concerned and yanked deposits.
The bridge bank was set up by the FDIC to take receivership of SVB’s assets and liabilities. SVB Private Bank includes the remnants of Boston Private, the wealth-oriented bank SVB acquired in 2021. The FDIC had tried to sell them together over the weekend with bids initially due Sunday.