Former Federal Deposit Insurance Corp. chair Sheila Bair says the smoothest way to handle Silicon Valley Bank’s failure is to find a buyer.
SVB, the nation’s 16th-largest bank, failed after depositors hurried to withdraw money this week amid anxiety over the bank’s health. It was the second biggest bank failure in U.S. history after the collapse of Washington Mutual in 2008.
“In almost all of our bank failures during the great financial crisis — we had about 400 of them — we did purchase an assumption; we sold a failed bank to a healthy bank. And usually, the healthy acquirer would also cover the uninsured because they wanted the franchise value of these large depositors. So optimally, that’s the best outcome,” Bair said Sunday during an appearance on NBC News’ “Meet the Press.”
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