FDIC has asked banks interested in acquiring Silicon Valley Bank (SVB) and Signature Bank to submit bids to participate in the auction by March 17, according to Reuters.
According to agency sources, the future owner of Signature must refrain from any interaction with digital assets. Meanwhile, the NYDFS assured that the closure of the institution is not related to its crypto business.
FDIC hired investment bank Piper Sandler Companies to organise the auction. This will be the regulator’s second attempt to sell SVB after the неудачного раунда of 12 March.
The authorities intend to auction the banks in full. However, if a full deal does not materialize, the agency may consider partial buyouts of the companies.
Access to the financial data of the collapsed institutions will be available only to participants affiliated with the banking system. According to media reports, this decision was made to give traditional creditors an advantage over private investment firms.
After publication, a FDIC spokesperson, in a comment to Reuters refuted the report that the buyer of Signature Bank must renounce its crypto business. He pointed to statements by the agency’s chairman Martin Gruenberg, according to which the FDIC does not intend to ban any particular activity by banks.
On March 10, the California Department of Financial Protection and Innovation shut down SVB due to “insufficient liquidity and insolvency” and handed it over to the FDIC.
On March 13, U.S. authorities began the resolution process for SVB and Signature Bank.
Regulators said that depositors would gain access to their deposits at the expense of shareholders and some holders of unsecured bonds.
Against the backdrop of SVB’s collapse, the stablecoin USDC and the algorithmic “stablecoins” DAI and FRAX lost their peg to the US dollar. Later, Circle, the issuer of USDC, gained access to deposits of $3.3 billion in the failed bank.
Earlier, on March 11, billionaire Elon Musk said he was willing to consider buying SVB.