FDIC considers Silicon Valley Bank break-up after failing to find a buyer

US regulators are moving toward a breakup solution for Silicon Valley Bank (SVB) after failing to line up a suitable buyer for the entire company, according to sources. The Federal Deposit Insurance (FDIC) is now seeking to sell the failed bank in at least two parts, said the sources. 

Bids are due Friday for the so-called “bridge bank” that the FDIC set up to take receivership of SVB’s assets and liabilities. Separately, the regulator will take bids by Wednesday for SVB Private Bank, or 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, but the regulator recently told suitors it was moving the deadline to broaden the pool of potential buyers for all or some of the franchise, the people said. No final decisions have been made, and the timeline or structure of the sales process could change. A representative for the FDIC didn’t respond to requests for comment.

Credit Suisse’s First Boston plan in doubt amid talks
 

Credit Suisse ’s investment-banking spin-off may struggle to  build a new CS First Boston as the lender nears a forced sale to UBS Group. Klein and others had already been talking to interested parties as they sought to line up investors for the business. UBS is showing little appetite for CS’s investment banking business.

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Buffett in contact with Biden officials on crisis
 

Berkshire Hathaway ’s Warren Buffett has been in touch with officials in Biden’s administration amid the banking crisis . The calls have centered around Buffett possibly investing in the regional banking sector in some way.

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