Elon Musk Shows Interest In Buying Silicon Valley Bank After Collapse
Razer CEO Min-Liang Tan suggested that Twitter should consider buying SVB and turning it into a digital bank. Interestingly, Twitter chief Elon Musk responded to his tweet, saying, “I’m open to the idea”.
On Friday, US regulators announced the shutdown of the Silicon Valley Bank (SVB) and seized all its assets. The move, which makes SVB the largest retail bank to fail since 2008, roiled global markets and stranded 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 responded to his tweet, saying, “I’m open to the idea”.
Startup-focused lender SVB was shut down by regulators a day after its stock price plummeted by 60%.
It all started after SVB on Thursday announced a stock offering and offloaded securities to raise much-needed cash as it struggled with falling deposits. In reaction, the firm’s shares collapsed 60% in New York and trading was suspended before regulators announced they had closed the bank.
The closure was issued by the California Department of Financial Protection and Innovation, which also named the Federal Deposit Insurance Corporation (FDIC) as the receiver.
SVB’s chief Greg Becker in a video message told the employees, “he is working with banking regulators to find a partner for the bank”. There is “no guarantee” that a deal will be struck, he added.
Notably, Silicon Valley Bank was the United States’ 16th largest bank, 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 taking possession of the bank filed Friday by California’s bank regulator, the Department of Financial Protection and Innovation.
