PNC decides not to bid for Silicon Valley bank as regulators struggle to find bailout buyers, a source says
A branch of PNC Bank in New York on Wednesday, January 18, 2023.
Bing Guan | Bloomberg | Getty Images
PNC Finance Group decided against bidding Silicon Valley Bank as regulators struggled to find a buyer for the failed bank’s assets, according to a source familiar with the matter.
The Pittsburgh, Pennsylvania-based bank sent an initial expression of interest to the Federal Deposit Insurance Corp for a deal for the SVB and held brief and preliminary discussions with the agency, the source said.
However, after conducting initial due diligence, PNC notified the FDIC Saturday that it had decided not to proceed, the source said.
The FDIC is conducting an auction for SVB this weekend, with final bids due Sunday, according to a report by Bloomberg News. Regulators on Friday shut down the SVB and confiscated its deposits in the biggest US banking meltdown since the 2008 financial crisis — and the second-biggest on record.
A full or partial takeover by another bank is one of the options regulators are exploring. You could also use the FDIC’s systemic risk exemption tool to insure the uninsured deposits with the SVB.
https://www.cnbc.com/2023/03/12/pnc-decides-not-to-bid-on-silicon-valley-bank-as-regulators-struggle-to-find-rescue-buyers.html PNC decides not to bid for Silicon Valley bank as regulators struggle to find bailout buyers, a source says