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Home » Silicon Valley Bank is getting back on its feet, opening new accounts and making loans

Silicon Valley Bank is getting back on its feet, opening new accounts and making loans

Troubles appear to be over for Silicon Valley Bank (SVB), a company which its new CEO Tim Mayopoulos says has started to resume operations in a bid to regain customer confidence.

in one release Signed by Mayopoulos, the Executive Director assures that he is doing everything to “rebuild confidence, regain confidence and continue to support the innovation economy”.

With that in mind, the CEO indicated that they are open for business and are working to bring all systems and solutions back online to provide support to users. Self, They make new loans and “full respect” of existing lines of credit.

Mayopoulos was fixed yesterday by the Federal Deposit Insurance Corporation (FDIC), which appointed him CEO of the bank based on his experience in the 2008 financial crisis as manager of Fannie Mae, one of the US mortgage giants.

Supported by the FDIC, the SVB pointed out in its statement that the Depositors have access to their money and both new and existing You are fully protected by this supervisory authority.

“This FDIC action means deposits with SVB are among the safest of any bank or institution in the country,” the California-based financial institution said.

SVB, a bank that focuses on the technology sector and cryptocurrencies, faced massive withdrawals from its customers last week, totaling $42 billion. The fact forced the bank to do so sell a $21 billion portfolio of bonds to cover its liquidity as reported by CriptoNoticias.

Some companies in the cryptocurrency space were affected by this measure. One of them was Circle, the company behind the development of the USD Coin (USDC) stablecoin.

As a result of this and another series of events, investors lost all confidence in the institution and filed for bankruptcy, making it one of the largest bankruptcies by a banking entity since the 2008 real estate crisis.

Regulators like the FDIC faced this situation fixed to protect insured depositors. To accomplish this, the FDIC created the Deposit Insurance National Bank of Santa Clara (DINB).

Upon completion, the FDIC immediately transferred all of Silicon Valley Bank’s insured deposits to DINB.

As of December 31, 2022, the SVB had approx $209 billion in total assets and approximately $175.4 billion in total deposits.

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