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By Bloomberg Mar 26, 2023 10:12:57 AM IST (Published)
Silicon Valley Bank became the biggest US lender to fail in more than a decade, unraveling in less than 48 hours after abandoning a plan to shore up capital. The bank took a huge loss on sales of its securities as interest rates climbed, unnerving investors and depositors who rapidly began pulling their money.
Valley National Bancorp and First Citizens BancShares Inc. are both vying for Silicon Valley Bank after its collapse earlier this month, according to people familiar with the matter.
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The two regional banks submitted separate bids for Silicon Valley Bank to the Federal Deposit Insurance Corp. before a Friday night deadline, said the people, who asked to not be identified because the matter isn’t public. The FDIC, which seized the lender and has been seeking to sell it for about two weeks now, is expected to choose a winner in the sales process as early as this weekend, the people said.
No final decision has been made and the FDIC could opt to hold onto Silicon Valley Bank or sell it to another suitor, the people added.