FDIC Delays SVB Bidding As Banking Crisis Continues, Bitcoin Price At $30K?
The Federal Deposit Insurance Corp (FDIC) said on Monday it is expanding the bidding process for Silicon Valley Bank (SVB) to simplify the bidding process after receiving “substantial interest” from several potential buyers.
According to a March 20 press release, the Federal Deposit Insurance Corporation (FDIC) said it needs more time to maximize value and a better outcome for depositors amid significant interest from multiple parties. Therefore, the FDIC has extended the bidding process for Silicon Valley Bank.
The FDIC will allow participants to submit separate bids for Silicon Valley Bridge Bank and its subsidiary Silicon Valley Private Bank. The FDIC will allow bidders to submit bids for Silicon Valley Private Bank by March 22 and solicit bids for Silicon Valley Bridge Bank by March 24.
Silicon Valley Bridge Bank currently operates as a nationally chartered bank. Depositors are not affected and can continue to access their funds through Silicon Valley Bridge Bank.
“Suppliers and counterparties with contracts with the bridge bank are legally obliged to continue to perform under the contracts. Silicon Valley Bridge Bank, NA has full ability to make timely payments to suppliers and counterparties and otherwise perform its obligations under the contract.”
The bridge bank was established by the FDIC on March 13 to take over the receipt of SVB’s assets and liabilities. SVB Private Bank includes the remains of Boston Private, the wealth-oriented bank SVB acquired in 2021.
Crypto market rally in the middle of the banking crisis
The crypto market recovered after the banks Silvergate, Silicon Valley Bank and Signature Bank were shut down by regulators. Bitcoin and Ethereum prices are currently trading above $28,000 and $1,800 respectively. BTC price has risen 4% in the last 24 hours, with 24-hour lows and highs of $27,196 and $28,527, respectively. Meanwhile, the ETH price is stable and traded sideways in the last 24 hours.
Shares in banks and bonds fell on Monday as UBS Group AG’s acquisition of Credit Suisse failed to calm investor fears, with the banking crisis deepening. UBS shares fell over 7% while Credit Suisse plunged over 60% on March 20. Shares in other banks including HSBC, ING Groep, Societe Generale, Deutsche Bank, Commerzbank and BNP Paribas also fell sharply.
The banking crisis has led to buying pressure on Bitcoin, with investors removing their money from banks and investing in Bitcoin and gold.
Also read: Bear Market officially over? Bitcoin Futures Open Interest Hits New Annual High
