FDIC asked banks interested in acquiring Silicon Valley Bank (SVB) and Signature Bank to submit bids before March 17. This is reported Reuters.
According to agency sources, the future owner of Signature should refuse any interaction with digital assets. At the same time, the New York State Department of Financial Services (NYDFS) previously assured that the closure of the organization was not related to its crypto business.
The FDIC hired the investment bank Piper Sandler Companies to organize the auction. This will be the regulator’s second attempt to sell SVB after unsuccessful round on March 12th.
The authorities intend to put the entire banks up for auction. However, if a full-fledged deal does not take place, the department may consider proposals for a partial buyout of companies.
Only participants affiliated with the banking system will be able to get acquainted with the financial data of the collapsed organizations. According to media reports, this decision was made to give traditional lenders an advantage over private investment companies.
On March 10, the California Department of Financial Protection and Innovation closed SVB due to “lack of liquidity and insolvency” and transferred it to the FDIC.
On March 13, the US authorities began the procedure for reorganizing SVB and Signature Bank.
The regulators said savers would gain access to their deposits at the expense of shareholders and some unsecured bond holders.
Amid the collapse of SVB, the stablecoin USDC and algorithmic stablecoins DAI and FRAX lost their peg to the US dollar. Later, Circle, the USDC issuer, gained access to $3.3 billion in deposits at the collapsed bank.
Recall that on March 11, billionaire Elon Musk announced his readiness to consider buying SVB.
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Cryplogger Newsletters: Keep your finger on the pulse of the bitcoin industry!
FDIC asked banks interested in acquiring Silicon Valley Bank (SVB) and Signature Bank to submit bids before March 17. This is reported Reuters.
According to agency sources, the future owner of Signature should refuse any interaction with digital assets. At the same time, the New York State Department of Financial Services (NYDFS) previously assured that the closure of the organization was not related to its crypto business.
The FDIC hired the investment bank Piper Sandler Companies to organize the auction. This will be the regulator’s second attempt to sell SVB after unsuccessful round on March 12th.
The authorities intend to put the entire banks up for auction. However, if a full-fledged deal does not take place, the department may consider proposals for a partial buyout of companies.
Only participants affiliated with the banking system will be able to get acquainted with the financial data of the collapsed organizations. According to media reports, this decision was made to give traditional lenders an advantage over private investment companies.
On March 10, the California Department of Financial Protection and Innovation closed SVB due to “lack of liquidity and insolvency” and transferred it to the FDIC.
On March 13, the US authorities began the procedure for reorganizing SVB and Signature Bank.
The regulators said savers would gain access to their deposits at the expense of shareholders and some unsecured bond holders.
Amid the collapse of SVB, the stablecoin USDC and algorithmic stablecoins DAI and FRAX lost their peg to the US dollar. Later, Circle, the USDC issuer, gained access to $3.3 billion in deposits at the collapsed bank.
Recall that on March 11, billionaire Elon Musk announced his readiness to consider buying SVB.
Found a mistake in the text? Select it and press CTRL+ENTER
Cryplogger Newsletters: Keep your finger on the pulse of the bitcoin industry!
