FDIC Auctions Off Failed Banks – Crypto Restrictions Apply

• The U.S. government and the Federal Deposit Insurance Corporation (FDIC) are auctioning off two failed American financial institutions, Silicon Valley Bank (SVB) and Signature Bank (SNBY).
• Bidders must not cater to cryptocurrency firms if they are to acquire SVB and SNBY, according to unnamed sources familiar with the matter.
• The New York State Department of Financial Services has denied that the recent bank shutdowns have anything to do with crypto, contradicting former U.S. House of Representatives member Barney Frank’s suspicions.

U.S Government Auctions Failed Banks

The U.S government and the Federal Deposit Insurance Corporation (FDIC) are auctioning off two failed American financial institutions, Silicon Valley Bank (SVB) and Signature Bank (SNBY), this week, with bids due by March 17.

Qualifications for Potential Buyers

Sources familiar with the matter said the qualifications to purchase the banks are stringent, and reportedly, the purchasers cannot deal with crypto businesses anymore.

Controversy Surrounds Alleged Crypto Restrictions

Unnamed sources disclosed that bidders must not cater to cryptocurrency firms if they are to acquire SVB and SNBY. This contradicts a statement from the New York State Department of Financial Services denying that recent bank shutdowns have anything to do with crypto — contrary to former U.S House of Representatives member Barney Frank’s suspicions about an „anti-crypto“ message being sent by shutting down these banks.

Auction Management & Details

The FDIC already attempted to auction off SVB last weekend, but no deals materialized, and is now using investment bank Piper Sandler Companies as its managing agent for both auctions of SVB & SNBY, hoping to sell them in their entirety or partially on specific branches & verticals — all depending on offers made by existing chartered banks only .

Conclusion

With bids due on Friday March 17th 2023 , it seems investors will have less than a week left in order for potential buyers who meet all requirements set forth by FDIC in order for them be able compete for bidding & acquiring these two institutions .