US regulators overseeing the emergency breakup of SVB Financial Group are racing to sell assets and make a portion of clients‘ uninsured deposits available as soon as Monday.
Saleha Mohsin, Lydia Beyoud and Sridhar Natarajan
US regulators overseeing the emergency breakup of SVB Financial Group are racing to sell assets and make a portion of clients’ uninsured deposits available as soon as Monday, according to people with knowledge of the situation.
The initial payout — the amount of which is still being determined — would aim to tide over the firm’s distressed customers, many of them Silicon Valley entrepreneurs and their companies, with more cash to follow as the bank’s assets are sold. The amount will depend in part on the Federal Deposit Insurance Corp.’s progress in turning assets to cash by Sunday night.
Figures being floated behind the scenes for an initial payment range from 30% to 50% or more of uninsured deposits, the people said, asking not to be identified discussing private talks.
A spokesperson for the FDIC didn’t respond to requests for comment on its plans.
