Tim Mayopoulos, the new chief executive of Silicon Valley Bridge Bank, has urged customers to return following SVB's historic collapse — and is asking them to do so with their deposits.
The Federal Deposit Insurance Corporation at the weekend transferred all deposits and assets from the failed SVB to a so-called bridge bank. Mr Mayopoulos was named the bank's chief executive on Monday, and on Tuesday sought to reassure customers that the bank was fully operational.
“We are open for business and are hard at work bringing all systems and solutions back online to support you,” he wrote in a note.
A bridge bank temporarily assumes control of a failed bank's assets and liabilities. The Silicon Valley Bridge Bank is currently operated and insured by the FDIC.
“We are doing everything we can to rebuild, win back your confidence, and continue supporting the innovation economy. We recognise the past few days have been an extremely challenging time, and we are grateful for your patience.”
Federal regulators took over SVB last week following the largest banking collapse since Washington Mutual in 2008.
In televised remarks on Monday, President Joe Biden said customers at the failed bank would have access to all their funds, even if that exceeds the FDIC's $250,000 coverage limit.
“All customers who had deposits in these banks can rest assured they'll be protected and they'll have access to their money as of today,” Mr Biden said.
Mr Mayopoulos urged customers to return to the bank by leaving deposits with Silicon Valley Bridge Bank and transferring back deposits.
“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.
He also said the bank is “open for business” for new customers and creating new accounts and making new loans.
Federal agencies open investigations into SVB collapse
The US Justice Department and Securities and Exchanges Commissions have opened separate investigations into SVB's collapse after it was taken over by federal regulators, The Wall Street Journal first reported.
Part of the Justice Department's investigation will examine any stock sales by SVB's financial officers before the bank's collapse. The probe involves FBI agents in the agency's San Francisco and Washington bureaus.
The two investigations are still in the preliminary stages and may not lead to any charges, according to The Wall Street Journal.
SVB was the 16th largest bank in the US with about $209 billion in total assets before it failed last week.
Federal Reserve Chairman Jerome Powell said the central bank would also launch an inquiry into SVB's collapse.