FDIC bidding for Silicon Valley Bank is in progress: Report
The United States Federal Deposit Insurance Corporation (FIDC) started an auction process on March 11 night for Silicon Valley Bank, Bloomberg reported citing unnamed sources. Bids are allegedly open for just a few hours, before the process closes later this Sunday.
According to Bloomberg sources, the FDIC is seeking a buyer for the California bank over the weekend, ahead of the markets open on March 13. However, a final decision has not been made, and a deal may not be reached.
Earlier today, the U.S. Treasury Secretary Janet Yellen said during an interview that she is working with regulators to address the Silicon Valley Bank collapse and protect investors, but is not considering a major bailout. She noted that regulators “want to make sure that the troubles that exist at one bank don’t create contagion to others that are sound.”
Trading platform in bankruptcy cases Cherokee Acquisition told the Financial Times that some clients are offered between 55 cents and 65 cents per dollar for their unsecured deposits. A second source said other customers received offers of 70 to 75 cents per dollar for deposits held at the bank.
Founder and Managing Partner of Ripple Ventures Matt Cohen said on Twitter that financial firms are offering affected companies “aggressive lending terms” under receivership certificates as collateral:
It’s unclear if Ripple has exposure to SVB collapse. Ripple’s CTO David Schwartz said on Twitter that an official statement would be released soon regarding a potential Ripple’s exposure to Silicon Valley Bank.
A Castle Hill audit report listing depositors went dark on March 12. Cointelegraph previously reported that assets from Web3 venture capitalists exceed more than $6 billion at the bank, including $2.85 billion from Andreessen Horowitz, $1.72 billion from Paradigm and $560 million from Pantera Capital.
This is a developing story, and further information will be added as it becomes available.
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