Regulators at the U.S. Federal Deposit Insurance Corp (FDIC) have asked banks interested in acquiring failed lenders Silicon Valley Bank and Signature Bank to submit bids by March 17, Reuters reported. The new auctions show how the FDIC is making a concerted effort to return the lenders to the private sector after regulators took over Silicon Valley Bank (SVB) last Friday and Signature Bank on Sunday, during a weekend of turmoil that has reverberated through the global financial system. This will be the FDIC's second attempt at selling SVB after a failed effort on Sunday. The FDIC has since retained investment bank Piper Sandler Companies to run a new auction, the sources said. The FDIC is aiming to sell both SVB and Signature in their entirety, while offers for parts of the banks could be considered if whole company sales do not happen. Only bidders with an existing bank charter will be allowed to study the banks' financials ahead of submitting their offer, a move which is aimed at giving traditional lenders an advantage over private equity firms.
