With bids for the entity formerly known as Silicon Valley Bank due Friday, potential buyers and regulators are running into an interesting reality: Breaking up—and salvaging—SVB is hard to do.
Nearly two weeks after SVB failed, the Federal Deposit Insurance Corp. has yet to find a buyer for the so-called bridge bank that took over SVB’s operations, despite being on the third round of bidding. After initially shunning bids by nonbanks, the regulator said this week that it would be open to offers from them in certain situations. An FDIC spokesperson said Thursday that it expects to choose a winner this weekend.
