On Friday, US regulators announced the closure of Silicon Valley Bank (SVB) and froze all of its assets. The move, which made SVB the largest retail bank to fail since 2008, sparked turmoil in global markets and trapped billions of dollars belonging to companies and investors.
Amid this chaos, Razer CEO Min-Liang Tan suggested that Twitter should consider buying SVB and turning it into a digital bank. Interestingly, Twitter chief Elon Musk replied to his tweet saying, “I’m open to the idea”.
Startup-focused lender SVB was shut down by regulators a day after its share price plunged 60%.
I’m open to the idea
— Elon Musk (@elonmusk) March 11, 2023
It all started when SVB on Thursday announced an offer of shares and closed securities to raise much-needed cash as it grapples with falling deposits.
In response, the firm’s shares fell 60% in New York and trading was suspended before regulators announced the bank’s closure.
The closure was issued by the California Department of Financial Protection and Innovation, which also named the Federal Deposit Insurance Corporation (FDIC) as receiver.
SVB chief Greg Baker told employees in a video message that “he is working with banking regulators to find a partner” for the bank. He said there was “no guarantee” that a deal would happen.
Notably, Silicon Valley Bank was the 16th largest bank in the United States, with a total of 17 branches in California and Massachusetts.
At the close of business on March 9, the bank had a negative cash balance of $958 million, according to an order for possession of the bank filed Friday by California’s bank regulator, the Department of Financial Protection and Innovation.
Information Source: NDTV
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