Silicon Valley Bank collapse: FDIC holding auction for bank, final bids due Sunday

THe Federal Deposit Insurance Corporation According to sources familiar with the situation, a auction was started for Silicon Valley Bank on Saturday night. All bids are due by Sunday afternoon.

According to unidentified sources, the FDIC hopes to close the deal quickly, but the winner might not be known until Sunday night. This deal is still in its final stages. Auction It is possible that there will not be any deal. According to People sourced from Bloomberg.

SILICON-VALLEY BANCK COLLAPSE. CEO CASHED IN MILLIONS, EMPLOYEES WON BONUSES

This auction is only two days after SVB crashed on Friday. Federal regulators took over the bank. After SVB disclosed that it had sold off a large number of securities at a loss, the bank moved to raise capital Wednesday. This panicked venture capital firms and caused a run on SVB.

According to sources familiar with the situation, the FDIC is currently working to sell assets to make some uninsured client deposits available to clients as soon as possible after the collapse. This will be the time that SVB branches reopen.

Janet Yellen is Treasury Secretary Federal bailouts are not likely to be ruled out SVB officials insist that they have been helping depositors since Sunday. Some people have compared SVB to the situation at the U.S. 2008 financial crisisYellen insists that the two situations are distinct.