In order to successfully auction off Silicon Silver and Standard Silver, it is rumored that the US Federal Deposit Insurance Corporation (FDIC) is willing to share the bad debts of the two banks in the future.

(Associated Press)

[Financial Channel/Comprehensive Report] After the failed auction of the bankrupt Silicon Valley Bank (SVB) and Signature Bank (Signature Bank), the US Federal Deposit Insurance Corporation (FDIC) began to compromise its position.

Sources pointed out that the FDIC may be willing to share the future bad debts of the two banks.

After gaining control of the two banks last week, the FDIC held an auction last week, hoping that the two companies would return to private ownership, but failed to attract too many bidders’ interest, and only received an offer from a non-bank buyer. The FDIC refused.

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People familiar with the matter said that the lack of interest from most bidders may be due to the FDIC’s reluctance to discuss the possibility of bearing any loss of bank assets. Due to the rush of time, the market’s response was cold. bad debts.

Buying silicon silver and standard silver could be an immediate loss for bidders, as they would have to lower the price of certain assets to reflect the bank's current market value.

Sources pointed out that as a strategy to attract buyers, the FDIC mentioned that it was willing to share the future losses of the two banks, but did not specify more details.

"We are aggressively marketing the two banks," an FDIC spokesman said. "We did not set a deadline for bidding, but we still hope to resolve these issues within the next week."

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