FDIC wants to resume selling SVB and is moving toward a dissolution plan


March 19 (Reuters) – The US Federal Deposit Insurance Corp (FDIC) plans to restart the sale process for Silicon Valley Bank (SIVB.O) after it failed to find buyers at its latest auction, with the regulator saying a possible Separation of the failed lender is sought, according to people familiar with the matter.

One of the options being considered by regulators is a sale process for SVB’s private bank, with bids due on Wednesday, according to one of the sources, who asked not to be identified as these talks are confidential.

The private bank, which is part of the private customer business of the SVB, is aimed at wealthy private customers.

The FDIC will solicit bids for SVB’s custodian, which is also part of its retail banking operations and includes all of its consumer deposits, in a separate auction process Friday, the sources said, warning plans could change.

The FDIC did not immediately respond to requests for comment. Bids for the entire SVB were due on Sunday.

The FDIC, which insures deposits and administers receiverships, has previously notified banks considering bids in the SVB and Signature Bank (SBNY.O) auctions that it is considering selling some of the assets that are under water at the failed lenders , to keep.

Reuters reported earlier Sunday that efforts by some US regional banks to raise capital and allay fears about their health are met with concerns from potential buyers and investors about impending losses on their assets.

Bloomberg News earlier Sunday reported the FDIC’s plans to disband the SVB.

Reporting by Rishabh Jaiswal in Bengaluru and David French in New York Additional reporting by Pete Schroeder in Washington Editing by Nick Zieminski and Matthew Lewis

Our standards: The Thomson Reuters Trust Principles.

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