Just-In: Silicon Valley Bank Likely To Be Sold To Another Bank And Not VCs

According to recent reports, the United States government will most certainly sell the now-defunct Silicon Valley Bank to another major bank. This effectively eliminates the possibility of a bid being placed by the private equity firms and venture capitalists that had been considering buying the troubled financial institution.
SVB To Be Sold As A Whole
The Federal Deposit Insurance Corporation (FDIC) took control of SVB after the bank failed on Friday, and the officials are currently working to sell the company. As per information obtained from outlets familiar with the sales process stated that there was virtually no possibility that SVB could be segregated into pieces and parcelled out to a private equity firm. Moreover, the primary goal is to sell what is left of the bank in one piece.
Read More: Uniswap Version 3 Goes Live On BNB Chain; Is UNI Token’s Price Poised To Rally?
However, these processes may take time due to the ongoing investigation initiated by the U.S. SEC and the Department of Justice. The inquiry comes after regulators last week took control of the California-based financial institution, which primarily served venture capitalists and tech startups spread across the globe.
The SVB Fiasco
The collapse of SVB started last week when it announced that it needed to raise $2.25 billion to rebuild its balance sheet. Both venture capital firms and their portfolio companies instructed their companies to withdraw deposits, while other clients scrambled to get their funds out of the bank before it became unavailable. This ultimately led to the classic example of a “bank run”.
The bank apparently held deposits totaling around $175 billion and assets worth $209 billion before it abruptly collapsed. The Silicon Valley Bank’s demise made it the biggest financial institution in the country to fail since the 2008 financial crisis and is presently being sued by its shareholders on allegations of fraud.
Also Read: Coinbase Delists 6 Top Altcoins Following Internal Review
- Mr Beast, Whales Buy ASTER Token Amid 20% Crash, What’s Next?
- Breaking: U.S. Government Shuts Down After Congress Fails to Pass Funding Bill
- Breaking: BNB Chain Account Hacked With Founder CZ Shown Promoting Meme Coin
- Trump’s Thumzup Media Boost Dogecoin Mining Fleet, Pumps $2.5M Into DogeHash
- BREAKING: 21Shares SUI and Polkadot ETFs Gain DTCC Listing
- SUI Price Eyes $4.5 as Coinbase Futures Listing Sparks Market Optimism
- Chainlink Price Holds $20 Support Amid Tokenization With DTA Standard Progress – Is $47 Next?
- Analyst Predicts Dogecoin Price Surge as DOGE ETF AUM Hits $20M
- Ethereum Price Eyes $8,600 As Institutions And Whales Double Down
- Dogecoin Price Prediction – Chart Set-Up Highlights Perfect Buying Opportunity With Outflows Backing $0.45
- Bitcoin Price Set to Rebound Ahead of US Government Shutdown, NFP Data