The US Federal Deposit Insurance Corp (FDIC) is planning to restart the sale process for Silicon Valley Bank after failing to attract buyers in the latest auction, with the regulator seeking the potential break-up of the failed lender, according to people familiar with the matter.
One option the regulator is considering is a sale process for private bank SVB that will take place on Wednesday, according to one of the sources, who requested anonymity because the discussions are confidential.
The private bank, located in SVB’s retail operations, caters to high-net-worth individuals.
The FDIC will invite bids for the depositary bank SVB, which is also part of the retail operation and includes all its consumer deposits, in a separate auction process, sources said, cautioning that plans may change.
The FDIC did not immediately respond to a request for comment. Offer for all SVB due on Sunday.
The FDIC, which guarantees deposits and manages receiverships, has previously told banks mulling bids at auctions for SVB and Signature Bank has been considering retaining some of its underwater assets in failed lenders.
Reuters reported on Sunday that efforts by some regional US banks to raise capital and allay fears about their health are running afoul of potential buyers and investors’ concerns about asset losses.
Bloomberg News reported on the FDIC’s plan to liquidate SVB on Sunday.