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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.