US regulators are moving toward breaking up Silicon Valley Bank (SVB), after failing to find a suitable buyer for the bank as a whole, according to Bloomberg.
Bloomberg said the FDIC is now seeking to sell the collapsed bank in at least two parts.
The people said that bids for the so-called “bridge bank” set up by the federal corporation are scheduled to be received until Friday, to take receivership over the assets and liabilities of the Silicon Valley bank.
Separately, the regulator will receive bids, by Wednesday, to buy the bank's private unit, SVB Private Bank, or what remains of Boston Private Bank, which became the wealth management unit of the Silicon Valley Bank Group, which was acquired in 2021.
It the FDIC tried to sell the two units together over the weekend, with a bidding date initially set for Sunday, but the regulator recently told applicants it would move the deadline to expand the base of potential buyers for all or some of the franchise.
No final decisions have been made on the matter, and the timeline or structure of the sale.
The Silicon Valley Bank collapsed and was taken into custody by the Federal Deposit Insurance Corporation earlier this month, after its long-established client base grew increasingly wary of tech startups and deposit withdrawals.
Bloomberg reported Saturday that First Citizen Bank Shares was evaluating an offer to buy a bank.
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