FDIC’s McKernan Says Failed-Bank Auctions Aren’t Competitive

The Federal Deposit Insurance Corp. failed to create a level playing field for nonbank bidders pursuing First Republic Bank, according to FDIC board member Jonathan McKernan.

“Since the SVB auction, I’ve pushed for changes to build more competitive tension in our failed-bank auctions so we get the best price,” McKernan said in an interview, referring to the seizure and sale of Silicon Valley Bank to First Citizens BancShares Inc. in March. “But the FDIC ran essentially the same process again for First Republic.”

Jonathan McKernan

Photographer: Amanda Andrade-Rhoades/Bloomberg

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