US regulators open to sharing losses to smooth sale of SVB and Signature

US regulators are open to discussing loss-sharing to smooth the sale of failed lenders Silicon Valley Bank and Signature Bank, after the FDIC's change in position. Buyout titans such as Blackstone Group and Apollo Global Management are interested in buying parts of SVB's loan book, but the FDIC is o

March 19, 2023 . 10:23 AM

1 min read

US regulators willing to discuss loss-sharing to facilitate sale of Silicon Valley Bank and Signature Bank.
Federal Deposit Insurance Corporation's change in position a significant shift.
FDIC has not indicated size of losses it would be willing to backstop or how arrangement would be structured.
Lack of interest in auction partly due to FDIC's unwillingness to shoulder any losses on lenders' assets.
Buyout titans such as Blackstone Group and Apollo Global Management have expressed interest in buying parts of SVB's loan book.