The U.S. Federal Deposit Insurance Corp (FDIC) is considering reinitiating the process of selling Silicon Valley Bank after it failed to attract buyers at its latest auction, with the regulator seeking a possible breakup of the failing lender, according to people familiar with the subject.
One of the options being considered by the regulator is a process to sell SVB’s private bank for which bids are due on Wednesday, according to one of the sources, who spoke on condition of anonymity because those discussions are confidential.
Private banking, part of SVB’s retail operations, caters to high net worth individuals.
The FDIC will issue a tender for SVB’s depository bank, which is also part of its retail operations and includes all of its consumer deposits, on Friday in a separate auction process, the sources said. warning that plans could change.
The FDIC did not immediately respond to requests for comment. Bids for the entire SVB were expected on Sunday.
The FDIC, which insures deposits and handles receiverships, previously told banks considering bids in the auction for SVB and Signature Bank that it was considering keeping some of the assets that are underwater with defaulting lenders. .
Reuters reported earlier on Sunday that efforts by some U.S. regional banks to raise capital and ease fears over their health are being met with concerns from potential buyers and investors about impending losses to their assets.
Bloomberg News reported on the FDIC’s plans to dismantle SVB earlier on Sunday.