- A Silicon Valley bank auction is underway as the federal government scrambles to save the crumbling financial institution.
- Officials told The Washington Post the government was considering protecting uninsured depositors.
- Bidding is expected to continue until Sunday afternoon.
An auction for control of the failed Silicon Valley Bank is currently underway, with federal officials seeking ways to protect all deposits. Washington Post.
The Federal Deposit Insurance Corporation is expected to accept bids until Sunday afternoon after beginning the process on Saturday to find a buyer to protect depositors, a source close to the matter said. Bloomberg on SundayBloomberg said the goal is to select a winning bid as soon as possible ahead of market opening in Asia, but banks may not find a buyer.
Meanwhile, three senior government officials told The Washington Post they are considering an unprecedented move to fully protect uninsured deposits at banks following Friday’s bankruptcy. The move would be a potential alternative should the auction fail, the Post reported.
A once-trusted bank used by tech executives and start-up founders was shut down by regulators on Friday after a bank run triggered by falling stock prices and soaring interest rates. rice field. Its failure was the second largest bank failure since the 2008 financial crisis.
Treasury Secretary Janet Yellen said: CBS News on Sunday She said she had been working with regulators throughout the weekend after being asked by depositors to “develop appropriate policies to address the situation,” but declined to provide further details. , said investors will not receive a government bailout.
“Let me be clear, during the financial crisis, there were bailed out investors and owners of large organized banks,” Yellen said.
