Saturday 11 March 2023

Elon Musk Says He’s Open to the Idea on Buying Collapsed Silicon Valley Bank

 Silicon Valley Bank was shut down by California regulators on Friday and seized all its assets. The Federal Deposit Insurance Corporation was named as the receiver.

“Silicon Valley Bank has been closed by the California Department of Financial Protection and Innovation, and the Federal Deposit Insurance Corporation (FDIC) has been appointed receiver, becoming the first FDIC-backed institution to fail this year,” Market Watch reported.

“The news comes amid a crisis at parent SVB Financial Group SIVB, which lost a record 60% of its value on Thursday, after it disclosed large losses from securities sales and announced a dilutive stock offering along with a profit warning. The FDIC said all insured depositors will have full access to their accounts no later than Monday morning. Uninsured depositors will get a receivership certificate and may be entitled to dividends once the FDIC sells the bank’s assets,” the outlet added.

The bank reportedly holds $173 billion in deposits. The collapse could cause a recession.

The company provided funding to 44% of all venture capital-backed tech and healthcare companies that publicly listed on a stock exchange last year, according to its website.

Customers tried to pull millions of dollars out and can’t. Online banking and mobile services showing unavailable for some customers. The Feds shut it down.

The CEO of Silicon Valley Bank $SIVB sold $3.57 million worth of shares within the last two weeks, just before the bank’s collapse.

CEO of gaming hardware company Razer Min-Liang Tan recently proposed that Twitter acquire SVB and convert it into a digital bank. Interestingly, Twitter chief Elon Musk replied to his tweet, saying, “I’m open to the idea.”

Elon Musk’s response was celebrated on his Twitter platform.

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