Exclusive-PNC, RBC interest in SVB cools as regulators seek rescue bids
Reuters
Published Mar 12, 2023 04:33PM ET
Updated Mar 12, 2023 10:15PM ET
(Reuters) -Interest from two early suitors for Silicon Valley Bank - PNC Financial (NYSE:PNC) Group Inc and Royal Bank of Canada - had cooled on Sunday, as U.S. regulators invited bids for the failed lender, according to sources familiar with the matter.
The Federal Deposit Insurance Corporation (FDIC) had given a Sunday afternoon deadline for bids for the failed bank, one of the sources said. Reuters could not determine which banks had bid.
The banks and the FDIC declined comment.
The FDIC has been trying to find a buyer for Silicon Valley Bank this weekend after taking control of it on Friday so that the bank's corporate clients that had their money frozen can meet their payroll obligations. But a deal on a tight timeline has proven to be hard. Bids were due for SVB at 2:00 pm ET 1800 GMT), two of the sources said.
PNC, one of the 10 largest U.S. banks by assets, wanted to pursue a bid for the entirety of Silicon Valley Bank, one of the sources added, but then studied a bid for parts of Silicon Valley Bank. A separate source familiar with the matter said PNC had decided to withdraw from any further talks.
RBC also explored a takeover of Silicon Valley Bank but it was unlikely to pursue it, three sources said. One of the sources added that RBC has struggled to get comfortable with the risks involved and the complexities of justifying the deal to regulators in its home country of Canada. RBC bought City National Bank in 2015. It is the eighth largest bank by deposits in California, according to FDIC data.
The sources requested anonymity because the matter is confidential.
U.S. Treasury Secretary Janet Yellen on Sunday ruled out a government bailout of Silicon Valley Bank and said she was working with regulators to find a solution.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.