U.S. authorities confiscated all of Silicon Valley Bank (SVB) Financial Group's assets and shut it bankrupt last Friday.
U.S. authorities confiscated all of Silicon Valley Bank (SVB) Financial Group's assets and shut it bankrupt last Friday. Companies and investors lost billions of dollars as a result of the move, which made SVB the biggest retail bank to collapse since 2008.
In the midst of this upheaval, Min-Liang Tan, CEO of gaming hardware company Razer, urged that Twitter purchase SVB and convert it into a digital bank. Curiously, Twitter boss Elon Musk reacted to his message, adding, "I'm open to the idea."
A day after its stock price dropped 60%, authorities shut down SVB Financial Group, a lender that specialises in working with startups.
SVB, which has been having trouble keeping up with its declining deposits, launched a public offering and sold securities on Thursday, setting off a chain of events. Shares of the company dropped 60% in New York before authorities said they were closing the bank, prompting a halt in trading.
In addition to issuing the order to close, the California Department of Financial Protection and Innovation appointed the Federal Deposit Insurance Corporation (FDIC) as receiver.
SVB's head Greg Becker in a video message assured the staff, "he is working with banking regulators to find a partner for the bank". However, he said, there is "no guarantee" that an agreement will be reached.
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At its time, Silicon Valley Bank was the 16th biggest bank in America, having 17 locations throughout the Golden State and the Bay State. The California Department of Financial Protection and Innovation, which regulates banks, filed an order to seize the institution on Friday due to the bank's $958 million negative cash balance as of March 9.
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