According to Bloomberg, citing unnamed sources, the US Federal Deposit Insurance Corporation (FIDC) began the auction process for Silicon Valley Bank on the evening of March 11. Bidding is said to only be open for a few hours before it closes later on Sunday.
The FDIC is looking for a buyer for the California bank over the weekend, ahead of the market opening on March 13, according to Bloomberg. However, no final decision has been made and a deal may not be reached.
Earlier today, U.S. Treasury Secretary Janet Yellen said in an interview that she was working with regulators to resolve the Silicon Valley bank failure and protect investors, but was not considering a large bailout. She noted that regulators “want to make sure that what’s wrong with one bank doesn’t spread to other sound banks.”
According to Yellen, the FDIC is considering “a broad range of available options,” including acquisitions from foreign banks. “We’re certainly working to resolve this in a timely manner,” she noted.
Cherokee Acquisition, a trading platform in the bankruptcy case, told the Financial Times that some clients were being quoted between 55 cents and 65 cents per dollar for unsecured deposits. Other customers have received offers of 70 to 75 cents per dollar for bank deposits, the second source said.
“I had some companies sell for 90 cents to make sure they got paid. All of these companies had the SVB effect,” one venture capital investor told the FT.
Matt Cohen, founder and managing partner of Ripple Ventures, said on Twitter that financial firms are offering affected companies “aggressive loan terms” as collateral based on transcendence certificates:
Buy some very aggressive loan terms from people who provide lending facilities to affected companies with Beyond certificates as collateral (0.30/$ range, 18m, 12%+ equity)
As you know, see these offers? ? ?
— Matt Cohen (@mattybcohen) March 11, 2023
It is unclear whether Ripple is at risk of SVB crashing. Ripple’s CTO David Schwartz said on Twitter that an official statement on Ripple’s potential exposure to Silicon Valley Bank will be released soon. Cointelegraph reached out to Ripple but did not immediately hear back.
On March 12, a Castle Hill audit report listing depositors disappeared. Cointelegraph previously reported that Web3 venture capitalists have more than $6 billion in assets at the bank, including $2.85 billion from Andreessen Horowitz, $1.72 billion from Paradigm and $560 million from Pantera Capital.
Silicon Valley was shut down by California financial regulators on March 10 after announcing a massive asset and stock sale to raise $2.25 billion to stay afloat.
Information source: compiled by 0x information from COINTELEGRAPH.Copyright belongs to the author Ana Paula Pereira, without permission, may not be reproduced