Warner: US needs to find buyer for Silicon Valley Bank

The best outcome for the failed Silicon Valley Bank would be for U.S. officials to find a buyer for it on Sunday, Sen. Mark Warner (D-Va.) said, after its collapse last week.

“The best outcome will be can they find a buyer for this SVB bank today before the markets open in Asia later in the day,” Warner said on ABC’s “This Week.” “The depositors can be taken care of and the best outcome will be an acquisition of SVB.”

The fall of the bank last week sent shock waves throughout the tech industry, which relied heavily on the bank for financing. Federal regulators took the bank under control last week, as fears of widespread banking difficulties rose. 

Warner on Sunday was hesitant to say whether the U.S. government should consider a federal bailout of the bank to ensure depositors receive all of their money if regulators are unable to find a buyer.

“Let’s see what happens today first,” Warner said. “There’s generally been a feeling that the people responsible, the shareholders of the bank, ought to lose their money.”

Treasury Secretary Janet Yellen, meanwhile, said Sunday that federal regulators were considering a wide range of options with the bank, including the possibility of an acquisition.

While Warner said the government needs to be monitoring other banks that have been flagged by the White House as being potentially vulnerable following the SVB collapse, he also said he is confident that the state of the U.S. banking system is strong.

“I’m more optimistic this morning than I was yesterday afternoon,” Warner said. “We will see how this plays out during the rest of the day.”