The FDIC is planning another auction for a Silicon Valley bank


Appropriate The Wall Street Journalafter the first attempt failed on Sunday.

There will be another auction attempt on Sunday after the bankrupt Silicon Valley bank failed to find a successor. Magazine reported after talking to people familiar with the matter. However, it is not yet known when the second auction will take place.

The news came after FDIC officials told Senate Republicans on Monday that they would have more flexibility to sell it after it is declared a threat to the financial system, according to people familiar with the briefing. showed his notes Magazine.

The Silicon Valley bank collapsed last week as panicked clients suddenly pulled out tens of billions of dollars after the bank announced it had lost about $1.8 billion on the sale of its investments in U.S. Treasury bills and mortgage-backed securities. Ultimately, regulators shut down the Silicon Valley bank, and the Federal Deposit Insurance Corporation (FDIC) took control of the bank and said it would protect insured deposits.

On Sunday, the US Treasury, the Federal Reserve and the FDIC announced that they would “take decisive action to protect the US economy by strengthening public confidence in the (US) banking system” by effectively capping deposits above the FDIC’s $250,000 limit. Monday.

In addition, the Silicon Valley bank was not put up for auction on Sunday as none of the largest US banks submitted bids. But officials reportedly told lawmakers on Monday that at least one offer was made to the bank, but the FDIC rejected the offer.

“By declaring a company systemic, regulators have the flexibility to cover all of the bank’s depositors, including those whose deposits exceed $250,000 in insurance coverage,” the statement said. Magazine noted. “The move also allows regulators to offer potential buyers sweeteners, such as loss-sharing agreements, according to previous regulators.”

Jacob Bliss is a reporter for Breitbart News. Write to him or follow him on Twitter @JacobMBliss.


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