US insurer extends bidding process for Silicon Valley Bank entities

By Ovunc Kutlu

ISTANBUL (AA) - US insurer Federal Deposit Insurance Corporation (FDIC) announced Monday it has extended the bidding process for the troubled Silicon Valley Bank's (SVB) entities.

The extended bidding process includes Silicon Valley Bridge Bank, which was established to temporarily take over and maintain certain asset and liabilities of SVB after its sudden collapse, and its subsidiary Silicon Valley Private Bank.

"There has been substantial interest from multiple parties, and the FDIC and the bidders need more time to explore all options in order to maximize value and achieve an optimal outcome," the FDIC said in a statement.

"To help simplify the bidding process and expand the pool of potential bidders, the FDIC will allow parties to submit separate bids for Silicon Valley Bridge Bank, N.A., and its subsidiary Silicon Valley Private Bank," it added.

FDIC said qualified insured banks and those in alliance with non-bank partners will be able to submit bids on deposits or assets.

It said bids will be accepted on Silicon Valley Private Bank by 8:00 pm EDT on Wednesday, and on Silicon Valley Bridge Bank by 8:00 pm EDT on Friday.

Amid its sudden collapse, SVB was immediately closed by US regulators that appointed the FDIC as receiver.