SVB’s new director says its funds are among the safest in the country despite intervention
Tim Mayopoulos, the new CEO of Silicon Valley Bank (SVB), intervened last Friday by the US authorities and reopened under a new name – Silicon Valley Bridge Bank – assured this Tuesday that the institution is operating normally again and that its funds are among the safest in the country.. “We are doing everything we can to get back on our feet, regain their trust and continue to support the innovation economy,” Mayopoulos, who was appointed yesterday as the new top executive of the company managed by the regulatory authorities, said in a statement released.
Californian bank SVB, which specialized in emerging technology companies, was intervened on Friday after it unleashed a massive and uncontrolled pullback of customer deposits in reaction to a $21 billion asset sale by the bank, which resulted in a loss of $1.8 billion.
Its temporary closure by the authorities. unleashed a tremor in the national and international financial sector. which took Signature Bank by storm and caused the shares of a dozen regional financial companies to plummet.
In addition, major U.S. and European banks also suffered significant falls, which subsided on Tuesday.The shares of most of the financial companies recorded considerable rebounds.
In the statement, the new top executive insisted. that customers have access to all their deposits and that these are protected by the Federal Deposit Insurance Corporation (FDIC), which, according to Mayopoulos, “means that deposits held at SVB are among the safest of any bank or institution in the country.”
“The first thing you can do to support the future of this institution is to. help us rebuild our deposit base.both by leaving deposits at SVB and by transferring back deposits” withdrawn in the last few days.
Mayopoulos asks its customers to consider transferring at least part of the withdrawn funds. during the stampede as part of a “diversification strategy.” “We are also open to new clients. We are actively opening new accounts of all sizes and making new loans,” he stressed.