Tim Mayopoulos, who was appointed as the new chief executive officer of the collapsed Silicon Valley Bank, on Monday informed the lender is open and conducting business as usual.
The US Federal Deposit Insurance Corporation had chosen former Fannie Mae head Mayopoulos to lead the newly created entity, named Silicon Valley Bank N A, reported news agency Reuters. The regulator took control of SVB following its failure that crippled global stocks and sparked fears of crisis throughout global markets.
The regulator transferred all deposits of Silicon Valley Bank to this newly created bridge bank saying depositors can access to their money starting Monday. In the letter to clients, Mayopoulos said that the bank will provide more information as soon as it was available.
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“I look forward to getting to know the clients of Silicon Valley Bank…I also come to this role with experience in these kinds of situations. I was part of the new leadership team that joined Fannie Mae in the wake of the financial crisis in 2008-09, and I served as the CEO of Fannie Mae from 2012-18,” the report quoted Mayopoulos as saying in the letter.
The California-based lender, the 16th largest bank in the United States, was closed on Friday by the California Department of Financial Protection and Innovation which later appointed the Federal Deposit Insurance Corporation (FDIC) as its receiver.
The FDIC, in a statement, said as of December 31, 2022, SVB had approximately $209 billion in total assets and about $175.4 billion in total deposits. At the time of closing, the number of deposits in excess of the insurance limits was undetermined. The number of uninsured deposits will be determined once the FDIC obtains additional information from the bank and customers.
The collapse of Silicon Valley Bank (SVB), the largest vendor in the startup ecosystem, is likely to adversely impact the Indian startup scenario as well as it has injected a lot of uncertainty in the sector overnight, believe industry experts.