By Godson Umejiego, Bureau Chief, The Americas
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.
