Silicon Valley Financial institution’s new CEO requested prospects for his or her assist amid the current financial institution collapse, saying the financial institution is “open for enterprise”.
Silicon Valley Financial institution was acquired by the brand new Silicon Valley Bridge Financial institution, a “bridge financial institution” operated by the Federal Deposit Insurance coverage Company (FDIC), which transferred all deposits and property from the failed establishment to the newly shaped financial institution over the weekend. Tim Mayopoulos was appointed because the financial institution’s new CEO on Monday, assuring prospects of the financial institution in a Tuesday press launch that the establishment was absolutely operational.
“We’re doing every little thing we are able to to rebuild, win again your belief and proceed to assist the innovation financial system,” Mayopoulos wrote. “We acknowledge that the previous few days have been a particularly difficult time and we recognize your endurance.”
“We’re open for enterprise and are working arduous to carry all programs and options again on-line to assist you,” he continued. “We’re making new loans and repaying present credit score amenities in full.”
Federal regulators on Friday shut down Silicon Valley Financial institution, committing the biggest financial institution collapse for the reason that 2008 banking disaster. This closure despatched the tech world right into a spiral, elevating considerations about the way it will have an effect on the startup trade, which the banks have been working intently with.
President Biden careworn Monday that the financial institution wouldn’t obtain a bailout, and Treasury Secretary Janet Yellen dominated out a bailout for the financial institution on Sunday. A number of retailers additionally reported on Tuesday that federal authorities have opened an investigation into the financial institution’s closure.
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Mayopoulos urged prospects to return to the financial institution and begin depositing and transferring financial institution deposits which were withdrawn in current days. He additionally inspired new prospects to contemplate working with the financial institution, saying they’re making new loans and opening new accounts.
“An important factor you are able to do to assist the way forward for this establishment is to assist us rebuild our deposit base, each by leaving deposits with Silicon Valley Bridge Financial institution and by sending again deposits left over in the previous few days stayed,” he mentioned.
“Should you, your portfolio corporations or your agency have moved funds prior to now week, please contemplate returning a few of them as a part of a protected deposit diversification technique,” he added.
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