The Silicon Valley Bank, recently shut down by the US Federal Deposit Insurance Corporation (FDIC) due to an unprecedented collapse, reportedly has its remaining assets sold at auction.
According to Bloomberg, the auction's final bids are due today, March 12 (EDT), and a result could pass late on Sunday.
The FDIC hopes to conclude the auction before the markets open on Monday, allowing the agency to make at least a portion of SVB customers' uninsured deposits available by then.
The FDIC already issued a statement declaring that uninsured depositors will receive an advance dividend and a receivership certificate for the remaining amount of their uninsured funds within the next week.
Looking for Liquidity Options
TechCrunch reports that the startup ecosystem is already scrambling to find liquidity options for entrepreneurs who need to pay their employees next week.
For one, Brex CEO Henrique Dubugras is attempting to raise more than a billion dollars every weekend to fund an emergency bridge credit line.
Possible Buyers in the UK, Panic
According to Reuters, prospective buyers of the failed US bank Silicon Valley Bank's British subsidiary have emerged.
Prime Minister Rishi Sunak stated that the British government is attempting to find a solution to mitigate the potential impact on businesses.
OakNorth Bank, owned by SoftBank, is considering a bid to acquire Silicon Valley Bank UK Ltd. At the same time, ADQ, an Abu Dhabi-backed investment vehicle, is also interested in the UK bank.
As insolvency looms, the Bank of London, a clearing bank, is weighing the possibility of an offer, and the advisory firm Rothschild & Co is examining options for the subsidiary.
The Bank of England (BoE) mentioned that it is seeking a court order to declare Silicon Valley Bank's UK arm insolvent.
Meanwhile, Sunak told reporters he understood "the anxiety and concerns that bank customers have." He stated that he and the government were working to find a solution that secures the people's operational liquidity and cash-flow needs.
In the meantime, startups in India are also in turmoil. An anonymous US-based investor claimed that many Indian firms had $4-10 million parked in their SVB accounts.
A group of Indian Y Combinator founders surveyed its participants and discovered that over 60 companies had more than $250,000 kept in SVB.
Musk Enters the Frame
Elon Musk, CEO of both Tesla and Twitter, has expressed interest in acquiring Silicon Valley Bank after the bank's collapse; however, at least one Tesla investor believes Twitter should make the acquisition.
The CEO of gaming computer manufacturer Razer, Min-Liang Tan, tweeted that Twitter should acquire SVB and become a digital bank, to which Elon Musk replied, "I'm open to the idea." It is unclear whether Musk's remark was intended to be taken seriously or was merely another offhand remark.
The FDIC took over Silicon Valley Bank on Friday after its long-standing client base of tech startups withdrew deposits out of concern.
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