Silicon Valley Bank Sale Process Evolving In Unusual Direction

Washington, D.C. (March 20, 2023) - Having failed to quickly find a buyer for the assets and deposits of the newly created Silicon Valley Bank, N.A., Santa Clara, California (SVB),the FDIC has announcedthat it will expand the bidding process in the hopes of maximizing the value it can obtain from a sale. Now, non-banks will have the unusual opportunity to acquire assets from SVB.

The FDIC will allow qualified insured banks and, in another atypical step, allow qualified insured banks in partnership with non-bank partners to submit separate bids for SVB and its wealth management subsidiary, Silicon Valley Private Bank. The FDIC is allowing insured banks to team with non-bank partners to submit whole-bank bids, or bids on the deposits or assets. Additionally, non-bank financial firms will be allowed the opportunity to separately bid on the asset portfolios.