FDIC says to move toward breakup plan for Silicon Valley Bank

US regulators are moving toward a breakup solution for Silicon Valley Bank after failing to line up a suitable buyer for the entire company, according to people familiar with the matter.

The Federal Deposit Insurance Corp. is now seeking to sell the failed bank in at least two parts, said the people, who asked to not be identified because the matter isn’t public. A representative for the FDIC didn’t immediately respond to requests for comment, Bloomberg reports.

Bids are due Friday for the so-called “bridge bank” that the FDIC set up to take receivership of SVB’s assets and liabilities, the people said. Separately, the regulator will take bids by Wednesday for SVB Private Bank, or the remnants of Boston Private, the wealth-oriented bank SVB acquired in 2021.

The FDIC had tried to sell them together over the weekend with bids initially due Sunday, but the regulator recently told suitors it was moving the deadline to broaden the pool of potential buyers for all or some of the franchise, the people said.

No final decisions have been made, and the timeline or structure of the sales process could change.

Silicon Valley Bank collapsed into FDIC receivership earlier this month, after its long-established customer base of tech startups grew concerned and yanked deposits.

First Citizens BancShares Inc. was evaluating an offer for the bank, Bloomberg reported on March 18.