FDIC Extends Bid Window for Silicon Valley Bridge Bank, N.A.
Press Release | March 20, 2023
FDIC Extends Bid
Window for Silicon Valley Bridge Bank, N.A.
Agency Will
Continue to Operate the Bridge Bank while Exploring Strategic
Options
WASHINGTON – The Federal Deposit Insurance Corporation
(FDIC) has extended the bidding process for Silicon Valley Bridge
Bank, National Association, Santa Clara, California. 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. 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. Qualified, insured
banks, and qualified, insured banks in alliance with nonbank partners,
will be able to submit whole-bank bids or bids on the deposits or
assets of the institutions. Bank and non-bank financial firms will be
permitted to bid on the asset portfolios. The FDIC is seeking bids on
Silicon Valley Private Bank by 8:00 P.M. EDT on Wednesday, March 22,
2023, and on Silicon Valley Bridge Bank, N.A. by 8:00 P.M. EDT on
Friday, March 24, 2023. In the meantime, Silicon Valley Bridge Bank,
N.A., continues to operate as a nationally chartered bank. Depositors
will continue to have full access to all of their money through
Silicon Valley Bridge Bank, N.A., which operates 17 branches in
California and Massachusetts, and through online banking, ATM and
debit card, and by writing checks. Loan customers should continue
making loan payments as usual. 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 FDIC created
Silicon Valley Bridge Bank, N.A., on March 13, 2023, after being
appointed receiver of the former Silicon Valley Bank by the California
Department of Financial Protection and Innovation. All of the
deposits—both insured and uninsured— and substantially all assets, and
all Qualified Financial Contracts of Silicon Valley Bank were
transferred to the bridge bank. The purpose of establishing Silicon
Valley Bridge Bank, N.A., was to allow time for the FDIC to stabilize
the institution and market the franchise.
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MEDIA
CONTACT:
[email protected]
FDIC:
PR-22-2023
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