PNC Bank Branch in New York, on Wednesday, January 18, 2023.
Bing Guan Bloomberg Getty Images
PNC Financial Group has decided against the offer Silicon Valley Bank as the regulator struggled to find a buyer for the failed bank’s assets, according to sources familiar with the matter.
Pittsburgh, Penn.-based bank. sent an initial notice of interest to the Federal Deposit Insurance Corp. to deal with SVB and held a brief and preliminary discussion with the agency, the source said.
However, after conducting preliminary trials, PNC informed the FDIC on Saturday that it had decided not to move forward, the source said.
The FDIC is holding an auction for SVB this weekend, with the final bid on Sunday, according to a report from Bloomberg News. Regulators closed SVB on Friday and seized deposits in the biggest US banking failure since the 2008 financial crisis – and the second largest.
A total or partial acquisition by another bank is one of the options being explored by regulators. They can also use the FDIC’s systemic risk exclusion tool to withdraw uninsured deposits at SVB.