FDIC auction for SVB assets is said to be underway

by Ana Lopez

An auction for the remaining assets of the bankrupt Silicon Valley Bank is reportedly underway, with the final bids due this afternoon and a result possibly arriving late Sunday, according to Bloomberg.

Bloomberg says the US Federal Deposit Insurance Corp. (FDIC), which stepped in and closed SVB on Friday as it experienced an unprecedented run on funds by its clients, hopes to complete the auction before markets open Monday morning.

A quick sale could help the FDIC release at least some of SVB clients’ uninsured deposits by Monday. The US agency has already said it will make the sums insured available in full in time for the start of next week.

When contacted, a spokesperson for the FDIC said they would not comment on these reports.

While one possible solution looms in the background, others in the startup ecosystem are springing up to find liquidity options for entrepreneurs trying to make payroll next week. Most recently, CEO of Brex Henry Dubugras said he’s working to raise more than a billion dollars in a weekend to buy a emergency bridging credit line.

Learn more about SVB's 2023 collapse on TechCrunch

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