US Regulators Seek Bids for Failed Banks, Crypto Separation Required for Signature Bank Acquisition

It is worth noting that U.S. President Joseph Biden has stated that taxpayers will not be responsible for salvaging SVB and Signature, and successful sales would minimize any capital shortfalls that might occur.

The recent failure of SVB, the largest U.S. bank to fail since the 2008 financial crisis, has raised concerns in the banking sector and for startups that relied on the technology-oriented bank for financial services.

PNC Financial Services and Royal Bank of Canada, which owns California-focused City National Bank, were among the banks that considered but ultimately decided not to bid during last weekend's auction for SVB, according to Reuters.

SVB Financial Group, the previous owner of Silicon Valley Bank, is considering seeking bankruptcy protection as a means of selling its remaining assets, which include an investment bank and a venture capital business.

Signature Bank, which had almost 25% of its deposits originating from the cryptocurrency industry as of the end of September, was closed down due to "a considerable crisis of trust in the bank's leadership," according to the New York financial regulator.

The bank was well-known in the cryptocurrency community.