Silicon Valley Bank's new CEO, Tim Mayopoulos, has sent a letter to clients stating that the bank is open and conducting business as usual.
Mayopoulos mentioned that both existing and new deposits are protected by FDIC in the newly created Silicon Valley Bank, N.A. This statement comes after the FDIC transferred deposits and assets of the previous SVB to a full-service FDIC-operated 'bridge bank.'
However, some founders have reported difficulties accessing their accounts and waiting for wires to clear. Mayopoulos, who was the CEO of Fannie Mae during the 2008 recession, stated that he wants to restore confidence and support clients during these uncertain times.
SVB's deposits were recently taken over by regulators, and its previous CEO, Greg Becker, stepped down amidst a historical bank run. Despite uncertainty surrounding access to funding, regulator intervention provided relief to the tech sector, including startup founders who have been scrambling to make payroll and keep operations running.
The big question now is what will happen to the rest of SVB's assets, and whether customers will return to the bank. Mayopoulos' statement is a positive sign that SVB is trying to restore faith among its clients.
However, there are still unanswered questions, and it remains to be seen if clients will trust the bank once again. TechCrunch will provide updates on the story as it unfolds.
With a mixture of literature, cinema, and photography, Manish is mostly traveling. When he is not, he is probably writing another tech news for you!
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