Feds hold auction for failed Silicon Valley Bank, move to protect uninsured depositors
Economic expert Robert Wolf reassures consumers that SVB collapse is ‘nothing like Lehman’
Former Obama economic adviser and former CEO of UBS Robert Wolf breaks down the historic collapse of Silicon Valley Bank and the economic fallout that has followed on ‘Fox & Friends Weekend.’
Federal regulators are holding an auction for Silicon Valley Bank with bids due Sunday afternoon and are also taking action to backstop uninsured deposits at the failed bank.
Silicon Valley Bank (SVB), which was the nation’s 16th-largest bank prior to its insolvency last week, had been a go-to financial institution for Silicon Valley technology firms and companies backed by the area’s venture capital sector. It failed amid a liquidity crunch that came about as depositors needing cash withdrew funds, which forced the bank to sell bonds at a loss to cover withdrawals and stymied the firm’s efforts to raise additional capital to stave off the bank run.
The Federal Deposit Insurance Corporation (FDIC), which took SVB into receivership Friday when the bank closed, is holding an auction with the Treasury Dept. and other regulators to find a buyer for the bank as quickly as possible. Bids in the auction, which began Saturday and was first reported by Bloomberg, are due by Sunday at 2 p.m. Eastern Time.