The financial institution has reopened under a different name, Silicon Valley Bridge Bank, and has made the deposits available to customers, asking them to “remit some of the funds withdrawn” on Friday, as they are protected by the US government agency FDIC.
Tim Mayopoulos, the new CEO of Silicon Valley Bank (SVB), was intervened last Friday by US authorities and reopened under a new name —Silicon Valley Bridge Bank— has returned the financial institution to normal operation and its funds are “the safest in the country”.
“We are doing everything we can 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 with SVB are among the safest of any bank or institution in the country.”
California bank SVB, which specializes in tech startups, was seized on Friday after a massive and uncontrolled withdrawal of deposits from its clients was unleashed in response to a $21 billion asset sale by the bank, causing a loss of brought in $1,800. million.
Mayopoulos is now asking its clients to consider transferring at least some of the money raised during the rush 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.
The temporary closure of SVB caused a tremor in the national and international financial sector that wiped out Signature Bank and caused the shares of a dozen regional financial companies to plummet. In addition, the major US and European banks also suffered sharp price falls, although they are sinking after a few days.
Source: EITB
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
