The new CEO for Silicon Valley Bank asked customers for their support amid the recent bank collapse, saying that the bank is “open for business.”
Silicon Valley Bank 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 over the weekend. Tim Mayopoulos was appointed as the bank’s new CEO on Monday, and reassured the bank’s customers that the institution is fully operational in a press release Tuesday.
“We are doing everything we can to rebuild, win back your confidence, and continue supporting the innovation economy,” Mayopoulos wrote. “We recognize 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,” he continued. “We are making new loans and fully honoring existing credit facilities.”
Federal regulators shut down Silicon Valley Bank on Friday, making it the biggest bank failure since the 2008 banking crisis. This closure sent the tech world into a spiral, raising concerns about how it will affect the start-up industry that the banked worked closely with.
President Biden stressed on Monday that the bank would not be receiving a bailout, and Treasury Secretary Janet Yellen ruled out a bailout for the bank on Sunday. Multiple outlets have also reported Tuesday that federal authorities launched an investigation into the bank’s closure.
Mayopoulos urged customers to return to the bank and start to make deposits and to transfer bank deposits that were pulled over the last few days. He also encouraged new customers to consider working with the bank, saying that they are giving out new loans and opening new accounts.
“The number one thing you can do to support the future of this institution is to help us rebuild our deposit base, both by leaving deposits with Silicon Valley Bridge Bank and transferring back deposits that left over the last several days,” he said.
“f you, your portfolio companies, or your firm moved funds within the past week, please consider moving some of them back as part of a secure deposit diversification strategy,” he added.