Silicon Valley Bank loans could be letdown for private equity giants

The FDIC has a broad mandate to try to sell Silicon Valley Bank and Signature Bank assets at the best possible price to aid recoveries, whether that's as a whole or in pieces

Private equity firms circling the $74 billion loan book at Silicon Valley Bank may find that the Federal Deposit Insurance Corp. is unwilling to sell the assets — or at least not at bargain-basement prices. 
 

More than half of the bank’s lending program — $40.5 billion as of the fourth quarter — consists of lines of credit to firms backed by capital-call commitments from their investors, according to bank documents. Those loans typically have terms of one to two years, with low interest and default rates, meaning they’re not likely to deliver high-octane returns. 

During the 2008 financial crisis, private