Initiated by the Federal Deposit Insurance Corp. the auction process late Saturday for Silicon Valley Bankwith final bids due Sunday afternoon, according to people familiar with the matter.
The FDIC is seeking a quick deal but a winner may not be known until late Sunday, according to one person, who asked not to be identified because the matter is not public. No final decision has been made and it is possible that no agreement will be reached, the people said.
FDIC representatives did not immediately respond to requests for comment outside of regular business hours.
Silicon Valley Bank crushed into FDIC receivership on Friday, after the tech startup’s long-established customer base became concerned and took deposits. At the end of last year, SVB had more than $175 billion in deposits — most of which were uninsured — and $209 billion in total assets.
The FDIC is now racing to sell assets and make a portion of clients’ uninsured deposits available as soon as Monday, people with knowledge of the situation said. The agency said it will make 100% of protected deposits available on Monday, when Silicon Valley Bank branches reopen.
–With help from Ben Bain.
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