With the collapse of Silicon Valley Bank still reverberating throughout the financial and tech sectors, the U.S. Federal Deposit Insurance Corp is already looking to sell the company’s assets, expecting to take bids as early as Friday, March 17.
Harris Beach attorney Constantine Lizas, former lead counsel for BSA/AML for the FDIC, recently spoke with Pitchbook News and analyzed that a sale might not come so quickly because SVB had $6.7 billion in loans booked to startups.
“While there’s optimism that this bank will be purchased, it still has liabilities that are unresolved, meaning that if it has equity in a bunch of startups and these startups haven’t gone through down rounds yet, then it’s going to be difficult for a purchaser to buy something where the downside is currently unknown,” he said. Read more about what Lizas said to Pitchbook.