U.S. regulators are moving toward a deal breaker for Silicon Valley Bank after failing to find a suitable buyer for the entire company, according to people familiar with the matter.
The Federal Deposit Insurance Corp. is now looking to sell the bankrupt bank in at least two parts, said the people, who asked not to be identified because the matter is not public. An FDIC representative did not immediately respond to requests for comment.
Offers are due Friday for the so-called “bridging bank” the FDIC has set up to take SVB’s assets and liabilities into receivership, the sources said. Separately, the regulator will accept offers by Wednesday for SVB Private Bank, or the remains of Boston Private, the wealth-focused bank that SVB acquired in 2021.
The FDIC tried to sell them together over the weekend with deals originally scheduled for Sunday, but the regulator recently told suitors it was moving the deadline to expand the pool of potential buyers for some or all of the franchise, the people said.
No final decision has been made and the timing or structure of the sales process may change.
Silicon Valley Bank collapsed in FDIC receivership earlier this month after its long-established clientele of tech startups grew concerned and withdrew deposits.
First Citizens BancShares Inc. was evaluating an offer for the bank, Bloomberg reported on Saturday.
