Silicon Valley Bank, which collapsed over the weekend in the second-largest bank crash in American history, says it is “open for business” and soliciting new customers.
In a message shared with customers and posted on the bank’s website, CEO Tim Mayopoulos—who was put in charge by federal regulators who seized the bank—urged clients to move their money back in to “help us rebuild our deposit base.”
“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 said, adding that the bank was “open for business for any new customers” and “actively opening new accounts of all sizes and making new loans.”
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Customers pulled some $40 billion in deposits last week in a bank run set off by the news that SVB had sold $21 billion worth of securities at a loss. The federal government stepped in late last week to take control of the bank and insure all customers’ deposits.
The Federal Deposit Insurance Corporation picked Mayopoulos, the former CEO of Fannie Mae, to run the beleaguered institution Tuesday night.
Mayopoulos’s message spurred some derision online from former clients.
“Just got an email from the new Silicon Valley Bank CEO Tim Mayopoulos,” tweeted tech founder Kelly Ann Collins, alongside a screenshot of hte message. “It's going to take a minute, Tim.”
