Federal Deposit Insurance Corp. began the auction process late Saturday for Silicon Valley Bank, with bids closing late Sunday afternoon, according to people familiar with the matter.
The FDIC is aiming for a quick deal but the winner may not be known until late Sunday, according to one of the people, who asked not to be identified because the matter is not public. No final decision has been made and there may not be a deal, the people said.
A representative for the FDIC did not immediately respond to requests for comment outside of regular business hours.
Silicon Valley Bank fell into FDIC receivership on Friday, after a long-stable customer base of technology startups grew worried and yanked deposits. At the end of last year, SVB had more than $175 billion in deposits – the majority of which were uninsured – and $209 billion in total assets.
The FDIC is now racing to sell assets and make part of uninsured client deposits available as soon as possible, people familiar with the situation have said. The agency said it will make 100% covered deposits available on Monday, when Silicon Valley Bank branches reopen.
-With help from Ben Bain.
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