© Reuters. FILE PHOTO: A Royal Bank of Canada (RBC) logo is seen on Bay Street in the heart of the financial district in Toronto, January 22, 2015. REUTERS/Mark Blinch/File Photo
(Reuters) -Interest from two early suitors for Silicon Valley Bank – PNC Financial (NYSE:) Group Inc and Royal Bank of Canada – had cooled on Sunday, as U.S. regulators invited bids for the failed lender, according to sources familiar with the matter.
The Federal Deposit Insurance Corporation (FDIC) had given a Sunday afternoon deadline for bids for the failed bank, one of the sources said. Reuters could not determine which banks had bid.
The banks and the FDIC declined comment.
The FDIC has been trying to find a buyer for Silicon Valley Bank this weekend after taking control of it on Friday so that the bank’s corporate clients that had their money frozen can meet their payroll obligations. But a deal on a tight timeline has proven to be hard. Bids were due for SVB at 2:00 pm ET 1800 GMT), two of the sources said.
PNC, one of the 10 largest U.S. banks by assets, wanted to pursue a bid for the entirety of Silicon Valley Bank, one of the sources added, but then studied a bid for parts of Silicon Valley Bank. A separate source familiar with the matter said PNC had decided to withdraw from any further talks.
RBC also explored a takeover of Silicon Valley Bank but it was unlikely to pursue it, three sources said. One of the sources added that RBC has struggled to get comfortable with the risks involved and the complexities of justifying the deal to regulators in its home country of Canada. RBC bought City National Bank in 2015. It is the eighth largest bank by deposits in California, according to FDIC data.
The sources requested anonymity because the matter is confidential.
U.S. Treasury Secretary Janet Yellen on Sunday ruled out a government bailout of Silicon Valley Bank and said she was working with regulators to find a solution.