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Conducting business as usual: New SVB CEO sends email to clients

IANS | March 14, 2023 01:12 PM

SAN FRANCISCO: Tim Mayopoulos, the new CEO of collapsed Silicon Valley Bank (SVB), has sent an email to clients, saying the bank is conducting business as usual.

Mayopoulos, who joined the bank as CEO on Monday, said that new deposits, as well as existing ones, are protected by the Federal Deposit Insurance Corporation (FDIC) in the new bank called Silicon Valley Bank, N.A.

"Silicon Valley Bank, N.A. is open and conducting business as usual, " said the email, accessed by TechCrunch.

"We look to restore your confidence and support you and your companies at this time. The FDIC's latest statement confirmed SVB's new track, adding that senior management has been removed from the bank, " the email read.

Mayopoulous was part of the leadership suite at mortgage financing company Fannie Mae during the 2008 economic crisis.

Recently, he was the president of Blend, which brings software to the consumer banking industry.

The SVB collapse, along with Signature Bank and Silvergate Capital, is the worst financial crisis to hit the US since the failure of the Washington Mutual Fund in 2008 during the start of the US financial meltdown.

US President Joe Biden on Monday calmed an alarmed nation over the SVB collapse vowing to protect depositors' monies, fire the bank management, but declared investors would not be protected as they knew the risks they ran.

"Your deposits will be there when you need them. Small businesses across the country that have deposit accounts at these banks can breathe easier knowing they'll be able to pay their workers and pay their bills, " he said.

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