Silicon Valley Bank's new CEO, Tim Mayapoulos, told clients that the bank is "open for business" and urged top VC clients that had moved their deposits elsewhere to consider moving them back to the bank.
Hemant Taneja, CEO of General Catalyst, advised customers to return at least 50% of their capital into their SVB accounts. Furthermore, 650 startups have promised to maintain their accounts with the bank if a new buyer is found.
- The fallen bank is now doing business as Silicon Valley Bridge Bank N.A., a bridge entity established under the control of the Federal Deposit Insurance Corporation (FDCI).
- FDCI appointed Mayapoulos, formerly the CEO of Fannie Mae, to revive the bank.
- Mayapoulos declared that the bank would honor all its existing loan and credit facility commitments.
- In addition, all existing clients now have full access to their deposits, which are fully protected by the FDIC.
- There are plans to turn the bank into a new independent chartered bank or sell it to potential buyers.
- Over the last week, SVB's customers moved out over $40B worth of deposits from the bank.
