US regulator eyes Friday bids for SVB and Signature Bank, says report

Regulators at the US Federal Deposit Insurance Corp (FDIC) have asked banks interested in acquiring failed lenders Silicon Valley Bank and Signature Bank to submit bids by March 17, people familiar with the matter said on Wednesday.
 

The new auctions show how the FDIC is making a concerted effort to return the lenders to the private sector after regulators took over Silicon Valley Bank (SVB) last Friday and Signature Bank on Sunday, during a weekend of turmoil that has reverberated through the global financial system.
 

This will be the FDIC’s second attempt at selling SVB after a failed effort on Sunday. The FDIC has since retained investment bank Piper Sandler Companies to run a new auction, the sources said.
 

The FDIC is aiming to sell both SVB and Signature in their entirety, while offers for parts of the banks could be considered if whole company sales do not happen, two of the sources said.
 

Only bidders with an existing bank charter will be allowed to study the banks’ financials ahead of submitting their offer, a move which is aimed at giving traditional lenders an advantage over private equity firms, the two sources said.
 

Any buyer of Signature must agree to give up all the crypto business at the bank, the two sources added.
 

The sources requested anonymity because the matter is confidential. The FDIC declined to comment.