The Federal Deposit Insurance Corp. (FDIC) is planning another auction for failed Silicon Valley Bank, after their initial attempt to find a suitor was unsuccessful over the weekend. The FDIC has declared the failure of the bank as a threat to the financial system, giving them more flexibility in covering all depositors and offering incentives such as loss-sharing agreements to potential buyers.
Despite receiving at least one offer from another institution, the FDIC declined it during the failed auction on Sunday. The timing for the next auction has not been determined yet. The FDIC took over Silicon Valley Bank on Friday due to a run, on deposits and its inability to raise capital.
