Federal regulators are conducting an auction for Silicon Valley Bank, with final bids due Sunday, according to a report from Bloomberg News.
The bank was closed by regulators on Friday after massive withdrawals a day earlier created a bank run. The Federal Deposit Insurance Corporation (FDIC) took control of the bank on Friday, and started an auction process on Saturday night, according to the report.
It is still possible that no deal is reached, the report said. The collapse of SVB, which was a key player in the technology start-up world, is the largest U.S. bank failure since Washington Mutual in 2008. That bank was then purchased by JPMorgan Chase in a deal that restored the uninsured deposits.
Silicon Valley Bank (SVB) is a commercial bank that primarily serves the innovation economy. The bank was founded in 1983 and is headquartered in Santa Clara, California. SVB provides a range of banking and financial services to technology, life sciences, healthcare, private equity, and venture capital firms, as well as their investors and clients.
Some of the services offered by Silicon Valley Bank include commercial lending, deposit and payment solutions, foreign exchange, investment services, and treasury management. SVB also has offices in other parts of the United States, as well as in other countries including the United Kingdom, China, and Israel.
Silicon Valley Bank became known as a leading financial institution for startups and high-growth companies in the technology industry. The bank has a reputation for its expertise and understanding of the unique needs and challenges faced by innovative and fast-growing companies.
A total or partial acquisition by another bank is one of the options regulators are exploring this weekend. Many investors on Wall Street and Silicon Valley expect an announcement at some point on Sunday to detail the next steps in the SVB crisis.
Silicon Valley Bank failure rattled the US startup ecosystem. The company previously boasted that “nearly half” of technology and life science companies that had US funding banked with them, leading many to worry about the possible ripple effects of its collapse.
For banks that are FDIC-insured, only $250,000 per account is guaranteed. But according to SVB’s latest annual report, 96 percent of its total $173 billion in deposits was uninsured.