• The U.S. government and the FDIC are auctioning SVB and SNBY, with bids due on March 17, 2023.
• Sources say that the qualifications to purchase these banks are stringent and bidders cannot deal with crypto businesses.
• There is controversy surrounding the alleged crypto restrictions for potential bank buyers.
Failed Banks SVB and SNBY Up For Auction
The U.S. government and the Federal Deposit Insurance Corporation (FDIC) are auctioning off two failed American financial institutions, Silicon Valley Bank (SVB) and Signature Bank (SNBY), this week, with bids due by March 17th, 2023.
Stringent Qualifications for Buyer
Sources familiar with the matter said the qualifications to purchase the banks are stringent, and reportedly, the purchasers cannot deal with crypto businesses anymore.
Controversy Surrounds Alleged Crypto Restrictions
Last week, the second- and third-largest bank failures in America occurred within 48 hours of each other, and both banks are being sold this week via investment bank Piper Sandler Companies which is managing the auctions of both banks. The FDIC hopes to sell both SVB and SNBY in their entirety but partial offers will be considered as well. To purchase them however strict rules apply as only an existing chartered bank can submit an offer though bidders must not cater to cryptocurrency firms if they are to acquire SVB and SNBY according to sources familiar with the matter who spoke with Reuters reporters David French and Pete Schroeder .
New York State Department of Financial Services Response
This account of events stemming from unnamed sources contradicts a statement made by New York State Department of Financial Services who insisted that recent shut downs had “nothing to do with crypto” after former member of U.S House of Representatives from Massachusetts Barney Frank said he suspected it was an “anti-crypto” message which suggests his suspicions may be true if rules about purchasing SVB&SNBY hold up .
This article details that US government & FDIC have put up 2 failed financial institutions SVB & SNBY up for auction but has implemented stringent qualifications so only existing chartered banks can submit an offer while also having a no dealing policy when it comes to cryptocurrency firms which raised suspicions from Barney Frank who believes it could be an anti-crypto message yet NYDFS insists otherwise though there still remains some uncertainty around these claims