Mar 12, 2023 - Economy & Business

As of now, no buyer for Silicon Valley Bank

SVB office

Photo by Justin Sullivan/Getty Images.

The U.S. government has not yet been able to find a buyer for Silicon Valley Bank, setting up a decision by the U.S. Treasury and Federal Reserve to backstop all uninsured deposits before branches open on Monday morning.

State of play: The Federal Deposit Insurance Corp. spent the past several days frantically searching for a large financial institution that would take over SVB, or at least the commercial banking business at the center of its collapse. Bids were due earlier on Sunday.

  • A senior administration official implied that a deal remains possible, but not one that could have closed before banks open on Monday morning.
  • The official did not know if an auction process is also being run for Signature Bank, a New York-based bank that was shut earlier today by state regulators. Its depositors also are being made whole.

The bottom line: SVB depositors are safe, and its shareholders and bondholders are wiped out. The future of the business remains up in the air.

Go deeper