SVB’s new CEO urges clients to ‘help us rebuild our deposit base’

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  • Tim Mayopoulos, appointed by regulators to run SVB, sent an email to customers on Tuesday telling them the bank is “open for business.”
  • Myopoulos urged customers who moved their deposits elsewhere to “please consider moving some of them back as part of a safe deposit diversification strategy.”
  • SVB was seized on Friday by regulators following a run on the 40-year-old bank.

svbnew leader of told customers in a tuesday message The seized bank was “open for business” and ready to receive and hold customer deposits, drawing a call for venture capital firms and other tech customers back home.

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Tim Myopoulos, appointed as CEO by the Federal Deposit Insurance Corporation, wrote, “If you, your portfolio companies, or your firm have transferred funds within the past week, please include them as part of a safe deposit diversification strategy.” Consider taking some back.” of the bank, now called Silicon Valley Bridge Bank.

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In an email to customers also posted on SVB’s website, Myopoulos told the bank’s customer base that “depositors have full access to their money,” adding that both fresh inflows and existing deposits are fully regulated by the FDIC. were safe from

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Myopoulos wrote, “The number one thing you can do to support the future of this institution is by leaving a deposit with Silicon Valley Bridge Bank and transferring deposits that have accumulated over the past several days back to our deposit base.” Helping us rebuild.”

More than $40 billion in deposits fled SVB last week, as startups and venture funds fled the failed institution just after a mid-quarter report that showed it had sold $21 billion of securities at a loss . SVB’s failure was the second largest ever for a US bank after the 2008 collapse of Washington Mutual. Federal regulators intervened over the weekend, guaranteeing that depositors would not suffer as the contagion threatened to spread to other banks.

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In the post, Mayopoulos did not specify a limit on FDIC protection, consistent with comments from federal regulators that the backstop would be “structured in a way that fully protects all depositors.” The FDIC is mandated to insure only $250,000 worth of deposits per customer.

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