PNC decides to not bid on Silicon Valley Financial institution as regulators wrestle to search out rescue patrons, supply says

A PNC Financial institution department in New York, on Wednesday, Jan. 18, 2023.

Bing Guan | Bloomberg | Getty Photographs

PNC Financial Group has determined towards bidding on Silicon Valley Bank as regulators struggled to discover a purchaser for the failed financial institution’s belongings, in line with a supply accustomed to the matter.

The Pittsburgh, Penn.-based financial institution despatched an preliminary discover of curiosity to the Federal Deposit Insurance coverage Corp for a deal for SVB and held temporary and preliminary discussions with the company, the supply stated.

Nevertheless, after conducting preliminary due diligence, PNC knowledgeable the FDIC on Saturday that it determined to not transfer ahead, the supply stated.

The FDIC is conducting an public sale for SVB this weekend, with last bids due Sunday, in line with a report from Bloomberg News. The regulators shuttered SVB on Friday and seized its deposits within the largest U.S. banking failure because the 2008 monetary disaster — and the second-largest ever.

A complete or partial acquisition by one other financial institution is one of the options regulators are exploring. They may additionally use the FDIC’s systemic threat exception device to backstop the uninsured deposits at SVB. 

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