3:01:02 PM PDT - Monday, March 27th, 2023

Silicon Valley Bank’s new CEO urges customers to bring deposits back  

By Editor - Tue Mar 14, 12:05 pm

SVB’s new CEO Tim Mayopoulos has had a lot to say in the 24 hours since he joined the bank on Monday. In a private Zoom meeting run by SVB for a select number of LPs and investors, he asked clients to return deposits to the institutions: “that’s the single most important thing you can do to ensure that Silicon Valley Bank survives.” Mayopoulos, the former CEO and executive at Fannie Mae, said that the future of the bank is still being charted out, but added that depositors actions will impact these decisions. He said options for next incarnations for SVB Bridge Bank, its new name, is that it would team up with another financial institution or other investors, or that it could be wound down. “That is not the preferred course here; [the preferred] is to either allow Silicon Valley Bank to continue to operate as an independent institution with a new charter under Silicon Valley Bridge bank or to become part of another organization, or [that a] set of backers will be able to provide the capital, and funding for the business going forward.” The new executive asked for new deposits as well, saying that both existing and new deposits will be protected by the FDIC. A senior financial analyst who spoke on the call as well said that they are processing “high volumes” of new loans as we speak. “There’s no safer place in the United States, or any bank in the United States, for deposits,” Mayopolous said, adding that the freshly-formed bridge bank is “not even subject to the typical legal limit of $250,000 of the account.” He’s referring to the Federal Reserve’s joint statement on Sunday that clarified that SVB’s depositors, both insured and uninsured, will receive help in a manner that will “fully protect” all capital they have locked up in the bank. “This is not a risky thing we’re asking you to do,” Mayopoulos said during the call.

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Silicon Valley Bank’s new CEO urges customers to bring deposits back

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