NEW YORK: The new chief executive officer (CEO) of Silicon Valley Bridge Bank (SVBB) Tim Mayopoulos has one ask: that depositors pivot back to the lender.
“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 SVBB and transferring back deposits that left over the last several days,” he wrote in an email to clients.
The bank is open for business, making new loans and honouring existing credit facilities, Mayopoulos said.
Amid a textbook bank run, withdrawals initiated by depositors and investors amounted to US$42bil (RM188bil) on March 9 alone, regulators said.
The bank was seized by regulators on March 10. Mayopoulos, who helped usher Fannie Mae through the global financial crisis, was named CEO of the bridge bank on Monday.
“If 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 wrote. “We are also open for business for any new customers.”
Mayopoulos said on a conference call with clients that the future of the bank “is still being charted,” and that the company could be recapitalised, taken over by a new owner or wound down.
He called the last “the least desirable outcome”. — Bloomberg