SVB’s brand-new CEO advises customers to ‘assist us reconstruct our deposit base’

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A view of Silicon Valley Bank head office in Santa Clara, CA, after the federal government stepped in upon the bankâs collapse, on March 13,2023

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SVB‘s brand-new leader informed customers in a Tuesday message that the taken bank was “open for business” and all set to get and hold consumer deposits, a require equity capital companies and other tech clients to come back house.

“If you, your portfolio companies, or your firm moved funds within the past week, please consider moving some of them back as part of a secure deposit diversification strategy,” composed Tim Mayopoulos, who was selected by the Federal Deposit Insurance Corporation as CEO of the bank, now called Silicon Valley Bridge Bank.

In an e-mail to customers that was likewise published on SVB’s site, Mayopoulos informed the bank’s customer base that “depositors have full access to their money,” including that both fresh inflows and existing deposits were completely safeguarded by the FDIC.

“The number one thing you can do to support the future of this institution is to help us rebuild our deposit base, both by leaving deposits with Silicon Valley Bridge Bank and transferring back deposits that left over the last several days,” Mayopoulos composed.

Over $40 billion in deposits left SVB recently, as start-ups and endeavor funds ran away the stopping working organization simply after a mid-quarter report that revealed it had actually offered $21 billion worth of securities at a loss. SVB’s failure was the second-largest ever for a U.S. bank, behind the 2008 collapse of WashingtonMutual Federal regulators stepped in over the weekend, ensuring that depositors would not suffer losses as the contagion threated to infect other banks.

In the post, Mayopoulos didn’t define a limitation on FDIC defense, in line with federal regulators’ remarks that the backstop would be structured in a “manner that fully protects all depositors.” The FDIC is just mandated to guarantee $250,000 worth of deposits per consumer.

ENJOY: Regional bank stocks rebound