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Tuesday, March 28, 2023

SVB’s new CEO urged depositors to repay their money

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The director of the intervened entity called on customers to return to the entity so that the bank can recover.

The new director of Silicon Valley Bridge Bank, entity created by US federal regulators after the bankruptcy of the intervened Silicon Valley Bank (SVB), on Tuesday urged customers who withdrew their deposits to return their money so the bank can recover.

The SVB, a key to start-ups in the United States since the 1980s, collapsed after a massive withdrawal of deposits prompting financial regulators to seize control of the entity on Friday.

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“The first thing you can do to support the future of this institution is to help rebuild our deposit base by leaving deposits with Silicon Valley Bridge Bank and transferring deposits back.” said in a statement the executive director, Tim Mayopoulos.

Tim Mayopoulos.jpg

In addition, he added: “We are doing everything we can to rebuild, rebuild trust and continue to support the innovation economy.”

The SVB was replaced by the Silicon Valley Bridge Bank, a new bank regulated by the Office of the Comptroller of the Currency and whose figure under the name “bridge” (bridge) allows its new management to assume the obligations and commitments of the previous SVB.

The Federal Deposit Insurance Corporation (FDIC) said it will be liable for all SVB deposits, including those over the $250,000 protection limit.

“We are making new loans and fully honoring existing credit lines,” Mayopoulos said.

Source: Ambito

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