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Silicon Valley Bank asks for more deposits after bank collapse

The Pennsylvania Treasury's vault contains items that were left behind in bank safety deposit boxes and at colleges and nursing homes. You can search for unclaimed property in your name at (Rick Kintzel/The Morning Call/TNS)
March 17, 2023

The new CEO of Silicon Valley Bridge Bank is asking its customers to help the financial institution rebuild after its collapse last week.

CEO Tim Mayopoulos reached out in an email to clients on Tuesday to encourage transferring money or leaving deposits in the bank’s accounts as it bounces back following its recent disaster, Bloomberg reported.

“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 Silicon Valley Bridge Bank and transferring back deposits that left over the last several days,” he wrote.

READ MORE: Collapse of Silicon Valley Bank: What pushed this 40-year old bank to doomsday?

“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.”

The email also stated that SVB is still open, making loans and honoring existing client accounts.

The turnaround follows a disaster last week that saw depositors withdrawing $42 billion in a single day, with regulators taking over the institution on the following day.

Mayopoulos also found help from some top venture capitalists who agreed to continue doing business with the bank.

READ MORE: Biden says banking system is safe, blames Trump for Silicon Valley Bank failure

“We believe SVB is now one of the safest and most secure banks in the country,” General Catalyst CEO Hemant Tenaja said in a joint statement on behalf of the group.

Mayopoulos was named chief executive of the newly-created Silicon Valley Bridge Bank after the Federal Deposit Insurance Corporation took over its collapsed predecessor, Silicon Valley Bank. He previously was a leader of Fannie Mae during the 2008 financial crisis.

Meanwhile, SVB’s former leader Greg Becker reportedly flew to Hawaii following the bank’s collapse, according to the New York Post. Becker and his wife Marilyn Bautista left for their $3.1 million Maui townhouse days after his departure from the bank.

Becker also reportedly sold off 12,500 shares of the bank for almost $3.5 million two weeks before the bank collapsed. He is now being sued by SVB shareholders for allegedly concealing the situation at the financial institution prior to it going under, the New York Post reported.

The SVB temporary shutdown led to widespread concerns about bank shutdowns, leading Treasury Secretary Janet Yellen to release a statement to reassure lawmakers that America’s banking system is under control.

“I can reassure the members of the Committee that our banking system remains sound, and that Americans can feel confident that their deposits will be there when they need them,” Yellen said.