By David French and Pete Schroeder

(Reuters) -Regulators on the U.S. Federal Deposit Insurance coverage Corp (FDIC) have requested banks fascinated by buying failed lenders Silicon Valley Financial institution and Signature Financial institution (NASDAQ:) to submit bids by March 17, folks aware of the matter mentioned on Wednesday.

The brand new auctions present how the FDIC is making a concerted effort to return the lenders to the non-public sector after regulators took over Silicon Valley Financial institution (SVB) final Friday and Signature Financial institution on Sunday, throughout a weekend of turmoil that has reverberated via the worldwide monetary system.

This would be the FDIC’s second try at promoting SVB after a failed effort on Sunday. The FDIC has since retained funding financial institution Piper Sandler Corporations to run a brand new public sale, the sources mentioned.

The FDIC is aiming to promote each SVB and Signature of their entirety, whereas gives for components of the banks could possibly be thought of if entire firm gross sales don’t occur, two of the sources mentioned.

Solely bidders with an present financial institution constitution shall be allowed to check the banks’ financials forward of submitting their supply, a transfer which is aimed toward giving conventional lenders a bonus over non-public fairness companies, the 2 sources mentioned.

Any purchaser of Signature should agree to surrender all of the crypto enterprise on the financial institution, the 2 sources added.

The sources requested anonymity as a result of the matter is confidential. The FDIC declined to remark, each by itself behalf and for SVB. Signature and Piper Sandler didn’t instantly reply to requests for remark.

U.S. President Joseph Biden has mentioned that U.S. taxpayers won’t bear the price of salvaging SVB and Signature as a result of any capital shortfalls could be lined by a authorities fund that may place a levy on different banks. Profitable gross sales, nonetheless, would assist reduce such shortfalls.

SVB turned final week the largest U.S. financial institution to fail because the 2008 monetary disaster, spreading jitters throughout the banking sector and elevating doubt about the way forward for startups that turned to the technology-focused lender for monetary companies.

Among the many banks that studied however determined in opposition to a proposal throughout final weekend’s public sale for SVB had been PNC Monetary (NYSE:) Providers and Royal Financial institution of Canada, which owns California-focused lender Metropolis Nationwide Financial institution, Reuters has reported.

SVB Monetary Group, the previous father or mother of SVB, is exploring looking for chapter safety as one possibility for promoting its remaining property, which embrace an funding financial institution and a enterprise capital enterprise, Reuters reported on Wednesday.

Signature Financial institution was shuttered on account of “a big disaster of confidence within the financial institution’s management”, the New York monetary regulator mentioned on Tuesday. The financial institution was well-known within the crypto house, and on the finish of September nearly 1 / 4 of its deposits got here from the cryptocurrency sector.