Valley National, First Citizens said to bid on Silicon Valley


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. 

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. 

Also read:  Bank chaos tests traders’ nerves and rewards those doing nothing

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. 

First Citizens declined to comment “on market rumors or speculation.” Representatives for Valley National and the FDIC didn’t immediately respond to requests for comment. 

Also Read: How Silicon Valley Bank’s Missteps Shook the Market: A Cautionary Tale for Equity Investors

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. 

As of Friday, Raleigh, North Carolina-based First Citizens had a market value of $8.4 billion while Wayne, New Jersey-based Valley National’s valuation stood at $4.7 billion.

This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.

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