Regulators may still try to find a buyer for Silicon Valley Bank, source says
Regulators could make a second attempt to sell collapsed Silicon Valley Bank after the auction over the weekend led nowhere, according to a senior Treasury official.
There's still an opportunity to sell Silicon Valley Bank, according to the official, saying that's not off the table.
The Federal Deposit Insurance Corp. struggled to find a buyer for the failed bank's assets during the weekend. CNBC previously reported that PNC, which expressed interest initially, decided not to place an official bid after conducting due diligence.
The Wall Street Journal first reported that regulators are planning a second auction, citing people familiar with the matter.
The collapse over the past several days of Silicon Valley Bank and Signature Bank — the second- and third-largest bank failures in U.S. history — are worrying many that there could be a contagion effect in the broader banking system.
On Sunday evening, the Federal Reserve, FDIC and Treasury Department announced a plan to guarantee the uninsured depositors at SVB and Signature. The Fed also announced an additional funding facility for troubled banks.