SVB And Signature Bank Buyers Must Abandon Cryptocurrency Services
- The FDIC has given until March 17 (Friday) a deadline for financial institutions interested in purchasing the bankrupt Silicon Valley Bank and Signature Bank.
- The FDIC aims to sell SVB and Signature in their entirety, while offers for parts of the banks could be considered if a sale of the entire company does not happen.
- Any purchaser of Signatures must agree to forego all crypto business at the bank.
The FDIC has set the bid deadline for SVB and Signature Bank to be March 17. Buyers will have to give up all crypto-related business.
According to Reuters, regulators at the US Federal Deposit Insurance Corporation (FDIC) have set a deadline of March 17 (Friday) for financial institutions interested in purchasing the Silicon Valley Bank and Signature Bank went bankrupt.
The goal is to sell all of Silicon Valley Bank and Signature Bank. If it is not possible to sell all of it, consider selling part of the shares of the two banks.
According to sources obtained by Reuters, only bidders with existing bank charters are allowed to research banks’ finances before submitting their offers, a move intended to give donors an advantage traditional loans compared to private equity firms.
It is reported that the purchaser of Signature Bank must agree to give up all of the bank’s cryptocurrency business.
Known to be two crypto-friendly banks, regulators have emphasized that Signature Bank’s closure is due to a crisis of confidence in its management, not involvement with cryptocurrency companies. However, its leadership still considers it an operation to prevent the relationship between banks and crypto service providers.
The FDIC declined to comment on its behalf, and Silicon Valley Bank, and both Signature Bank and Piper Sandler, the entity responsible for the auction, immediately responded to requests for comment.
The new auctions show how the FDIC is concerted to return lenders to the private sector after regulators took over Silicon Valley Bank (SVB) on Friday and Signature Bank (SBNY.O) on Sunday, in a tumultuous weekend that has reverberated through the global financial system.
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