The financial institution has reopened under another name, Silicon Valley Bridge Bank, and has made the deposits available to customers, asking them to “transfer part of the funds withdrawn again” on Friday since they are protected by the US government agency FDIC.
Tim Mayopoulos, the new CEO of Silicon Valley Bank (SVB), intervened last Friday by the US authorities and reopened with a new name —Silicon Valley Bridge Bank— has ensured that the financial institution is operating normally again and that its funds are “the safest in the country.”
“We are doing everything possible to get back on our feet, regain their confidence and continue to support the innovation economy,” he said in a statement, adding 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 “.
Californian bank SVB, which specialized in tech start-ups, was seized on Friday after a massive and uncontrolled withdrawal of deposits from its clients was unleashed in reaction to a sale of assets by the bank of 21 billion dollars, which entailed a loss of 1800 million.
Mayopoulos is now asking his clients to consider transferring at least some of the funds withdrawn during the stampede as part of a “diversification strategy.”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 granting new loans,” he stressed.
The temporary closure of SVB unleashed a tremor in the national and international financial sector that swept away Signature Bank and caused the shares of a dozen regional financial companies to plummet. In addition, the main US and European banks also suffered significant falls on the stock market, although after several days they are subsiding.
Source: Eitb
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