FDIC auction was underway on Sunday for Silicon Valley Bank.
The final bids are due on Sunday.
“The Federal Deposit Insurance Corp. kicked off an auction process late Saturday night for Silicon Valley Bank, with final bids due by Sunday afternoon, according to people familiar with the matter,” Bloomberg News reported.
The ‘winner’ of the auction may not be known until late Sunday, Bloomberg said.
A deal may not even be reached.
BREAKING: FDIC auction for Silicon Valley Bank has kicked off with final bids due Sunday.
Who will it be? pic.twitter.com/sCS2gk5ZVw
— Genevieve Roch-Decter, CFA (@GRDecter) March 12, 2023
Silicon Valley Bank reportedly held $173 billion in deposits.
The Fed interest rate is at 4.57% and $117 billion of Silicon Valley Bank securities are yielding only 1.56-1.66% – this is causing a run on the bank.
By Friday Silicon Valley Bank was in FDIC receivership.
The Federal Reserve caused the run on the bank by raising interest rates seven times in 2022.
2022’s rate hikes totaling 450 basis points is causing problems for bankers because investors want to move their money into higher-yield bonds.
Several companies have disclosed exposure with SVB.
Circle, Roku, Roblox and BlockFi are just a few companies that took a big hit after Silicon Valley Bank collapsed.
First Republic Bank’s stock tumbled on Friday and depositors were seen lining up at a Los Angeles branch to withdraw their money.
I’ve never seen a bank run in Brentwood Los Angeles in over 40 years — this is at first republic bank branch. People standing in rain pic.twitter.com/k31PqqpyO3
— pjb.eth (@Dr_PhillipB) March 11, 2023
The Federal Deposit Insurance Corp. (FDIC) and Federal Reserve are discussing creating a fund to backstop deposits if more banks fail following the collapse of Silicon Valley Bank.
The post DEVELOPING: FDIC Auction Underway for Silicon Valley Bank appeared first on The Gateway Pundit.