The Federal Deposit Insurance Corp (FDIC) on Monday said it is extending the bidding process for Silicon Valley Bank (SVB) to simplify the bidding process after receiving “substantial interest” from multiple potential buyers.
According to a press release on March 20, the Federal Deposit Insurance Corporation (FDIC) said it needs more time to maximize value and a better outcome for depositors amid significant interest from multiple parties. Therefore, the FDIC has extended the bidding process for Silicon Valley Bank.
FDIC will allow participants to submit separate bids for Silicon Valley Bridge Bank and its subsidiary Silicon Valley Private Bank. FDIC will allow bidders to submit their bidding on Silicon Valley Private Bank by March 22 and seek bids for on Silicon Valley Bridge Bank by March 24.
Silicon Valley Bridge Bank is currently operating as a nationally chartered bank. Depositors are not impacted and can continue to access their money through Silicon Valley Bridge Bank.
“Vendors and counterparties with contracts with the bridge bank are legally obligated to continue to perform under the contracts. Silicon Valley Bridge Bank, N.A., has the full ability to make timely payments to vendors and counterparties and otherwise perform its obligations under the contract.”
The bridge bank was set up by the FDIC on March 13 to take receivership of SVB’s assets and liabilities. SVB Private Bank includes the remnants of Boston Private, the wealth-oriented bank SVB acquired in 2021.
Crypto Market Rally Amid Banking Crisis
The crypto market rebounded after the banks Silvergate, Silicon Valley Bank, and Signature Bank were closed by the regulators. Bitcoin and Ethereum prices are currently trading above $28,000 and $1800, respectively. BTC price is up 4% in the last 24 hours, with 24-hour low and high of $27,196 and $28,527, respectively. Meanwhile, the ETH price is stable and trading sideways in the last 24 hours.
Shares of banks and bonds fell on Monday as UBS Group AG’s acquisition of Credit Suisse fails to calm investors’ fear, with the banking crisis deepening. UBS shares fell over 7% while Credit Suisse plunges over 60% on March 20. Shares of other banks including HSBC, ING Groep, Societe Generale, Deutsche Bank, Commerzbank, and BNP Paribas also fell sharply.
The banking crisis has led to buying pressure on Bitcoin, with investors removing their money from banks and investing in Bitcoin and Gold.
Also Read: Bear Market Officially Over? Bitcoin Futures Open Interest Hits New Yearly High