The auction for the remaining assets of Silicon Valley Bank is said to be underway, and with final bids due this afternoon, a result could potentially arrive late Sunday. The failed bank’s assets reportedly include around $820 million in total, most of which is estimated to have been acquired through the sale of distressed loans.
One of the U.S. Federal Deposit Insurance Corp.’s (FDIC) aims is to avoid a financial crisis by concluding the auction before markets open on Monday morning. The FDIC will hope to reach an agreement with one of the six invited banks that would take over SVB before it closes its doors for good on September 14th, according to Bloomberg .
If the FDIC Mobility Fund is able to quickly sell off its assets, it would help the agency make available a portion of the uninsured deposits of State Street Bank and Trust customers by next Monday. So far, the FDIC has pledged to provide insured amounts in full in time for next week’s kick-off, but much of the uninsured cash may still be waiting on buyers.
The FDIC has not released any comment on these reports, which raises some questions about their validity. There have been previous reports of fraud within the banking industry, so it is uncertain whether or not these allegations are true.
Many entrepreneurs in the startup ecosystem are trying to find liquidity options for themselves and their teams next week. Brex CEO Henrique Dubugras is working to raise over a billion dollars in a weekend to help fund an emergency bridge credit line for the industry.
