Newly appointed CEO of Silicon Valley Bank Tim Mayopoulos in a private Zoom meeting run by SVB for a select number of LPs and investors urged customers to return their funds, stating that the bank is open for business.
He disclosed that it is the most important thing customers can do to ensure Silicon Valley Bank survives while assuring them that both existing and new deposits will be protected by the FDIC.
In his words, “We are doing everything we can to rebuild, win back your confidence, and continue supporting the innovation economy. We recognize that the past few days have been an extremely challenging time, and we are grateful for your patience”. We are open for business and are hard at work bringing all systems and solutions back online to support you”.
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Despite SVB disclosing that it was up and fully operational, the CEO however stated that things are still in the works. The bank stated on the call that it is still working to get cross-border solutions, including international wires back online. As regards other services and business units that SVB had from securities to venture debt, beyond the protected arm deposits, the future operating model is still being evaluated.
Mayopolous, who disclosed that the bank is back to conducting business as usual, since FDIC took over customers’ deposits, addressed social media’s perception of SVB that the bank is not in a wind-down mode. He further added that the future of the bank is still being discussed but will need at least some of its customer’s deposits as part of the diversification strategy.
Toward the end of the Zoom call, Mayopolous assured customers that they will be clear with everything that will be ongoing at the company to ensure to earn back their trust.
In his words, “Trust is a very delicate thing, it takes a long time to build trust, and it’s very easy to lose trust quickly. What we know here is we can’t take our clients for granted. The events of the last few days have unsettled people and put people in some really difficult positions.
“We are not oblivious to that, in everything that we are trying to do going forward we are trying to do our best to be clear and open with what’s happening and what is not happening”.
Following the collapse of the tech-focused Silicon Valley Bank, it was assumed by the new Silicon Valley Bridge Bank, a “Bridge Bank” operated by the Federal Deposit Insurance Corporation (FDIC), which transferred all deposits and assets from the failed institution to the newly formed bank.
Tim Mayopoulos, the former CEO of Fannie Mae, was appointed by the Federal Deposit Insurance Corporation (FDIC) to lead Silicon Valley Bank. He takes over after the bank was shut down by regulators as a result of a run on its deposits, which left it with insufficient capital.
For more than six years before joining fintech Blend, Mayopoulos was the CEO of mortgage financier Fannie Mae. Following his appointment as CEO of SVB, he has continued to reassure the bank’s customers that the institution is fully operational and ready to earn the trust of customers.
He also encouraged the new customers to consider working with the bank, saying that they are giving out new loans and opening new accounts.