FDIC to relaunch sale of Silicon Valley Bank, moves toward break-up plan

The U.S. Federal Deposit Insurance Corp (FDIC) is readying to relaunch the merchantability process for Silicon Valley Bank aft failing to pull buyers successful its latest auction, with the regulator seeking a imaginable break-up of the failed lender, according to radical acquainted with the matter.

One of the options nether information by the regulator is simply a merchantability process for the backstage slope of SVB for which bids are owed connected Wednesday, according to 1 of the sources, who requested anonymity arsenic these discussions are confidential.

The backstage bank, which is housed wrong SVB's retail operations, caters to high-net-worth individuals.

The FDIC volition invitation bids for SVB's depositary bank, which is besides portion of its retail operations and includes each its user deposits, connected Friday successful a abstracted auction process, the sources said, cautioning that the plans could change.

The FDIC did not instantly respond to requests for comment. Bids for the full of SVB were owed connected Sunday.

The FDIC, which insures deposits and manages receiverships, has antecedently informed banks mulling offers successful the auctions for SVB and Signature Bank that it was considering retaining immoderate of the assets that are underwater astatine the failed lenders.

Reuters reported earlier connected Sunday that the efforts of immoderate U.S. determination banks to rise superior and allay fears astir their wellness are moving up against concerns from imaginable buyers and investors astir looming losses successful their assets.

Bloomberg News reported connected the FDIC's plans to interruption up SVB earlier connected Sunday.