Five days after seizing control of Silicon Valley Bank, federal regulators were still in the process of auctioning off its remaining parts, but no si

Shards of Silicon Valley Bank Are for Sale, but No One Is Buying Yet

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2023-03-16 14:30:10

Five days after seizing control of Silicon Valley Bank, federal regulators were still in the process of auctioning off its remaining parts, but no single buyer appeared willing to take on everything.

SVB collapsed last week after a run on deposits left it insolvent. Federal officials committed to paying out all depositors in full, even if the bank didn’t have sufficient funds, and planned to sell off its assets, partly as a way of doing so.

The Federal Deposit Insurance Corporation has conducted the stop-and-start auction process, people briefed on the efforts said, and on Wednesday it had a significant way to go. Before SVB collapsed, it made a slew of loans to technology companies, venture capitalists and wealthy individuals — debt that should still be seen as valuable.

It also held stakes in venture capital firms and venture-backed companies and operated a fledgling investment bank of its own. Despite the market tumult since the bank’s collapse, those investments could collect a tidy sum, if the F.D.I.C. can find buyers, and defray the cost of paying out depositors.