Erstwhile Silicon Valley Bank (SVB) has been renamed Silicon Valley Bank, NA, and a new CEO has been appointed who is no other than Tim Mayopoulos.
“Silicon Valley Bank, NA is open and business as usual.” This sentence opens the email letter she sent to her Silicon Valley Bank clients announcing that its new CEO is the Greek-American Tim Mayopoulos.
The letter was more than necessary in order to calm spirits after the tumultuous developments at the bank.
Mayopoulos, who joined the company as CEO on Monday, made it clear that the new deposits — like the existing ones — are protected by the FDIC at the new bank, which has been named Silicon Valley Bank, NA
The FDIC transferred the former SVB’s deposits and assets “to a newly created, full-service FDIC bridge bank,” the email states.
“All bank payments entered on March 9 or 10 that have not already been processed since then have been cancelled.
“If you want to complete these transactions, you have to repeat them,” Mayopoulos adds.
Timothy Mayopoulos is considered a prominent figure in the US financial industry.
He gave his credentials during the financial crisis in 2008/09.
He joined the leadership team of mortgage lender Fannie Mae in 2008, which was on the brink of collapse.
He then served as its president and CEO.
Under his guidance, the company not only returned to profitability but returned more than $167 billion in dividends to taxpayers.
In 2018 and after his successful tenure, he was leaving to take on the role of president at Blend in 2019.
His arrival caused a sensation, as it was not common for the tech industry to have such a high-profile entry from the financial industry.
Silicon Valley Bank, NA is open and operating as usual.
We are here to serve you. I recognize that the past few days have been an extremely difficult time for our customers and employees, and we are grateful for the support of the amazing community we serve. I am joining the company as CEO from today.
Over the weekend, the FDIC transferred all of the deposits and substantially all of the assets of the former Silicon Valley Bank to a newly formed, full-service “bridge bank” operated by the FDIC, in an action intended to protect all depositors of Silicon Valley Bank. Depositors have full access to their money and new and existing deposits are protected. You can read more in the press release issued today.
A few notes:
All existing deposits are protected by the FDIC.
All NEW deposits are also FDIC-protected.
All bank payments entered on March 9th or 10th that have not already been processed since then have been canceled. If you want to complete these transactions, you must redo them.
It’s business as usual in the US and we expect to resume cross-border transactions in the coming days.
We know many of you have questions, and we appreciate your patience as our dedicated team works as quickly as possible to serve you. More information will be provided as it becomes available.
I look forward to meeting the clients of Silicon Valley Bank. I come to this role with humility. I also come to this role with experience in these types of situations. I was part of the new leadership team that joined Fannie Mae in the wake of the financial crisis in 2008/09 and served as CEO of Fannie Mae from 2012/18. I’m very proud of the work we did there to restore the company’s profitability and stabilize the housing finance system during a time of unprecedented challenges.
I also come with experience and appreciation for the innovation economy. Until recently, I was president of a Silicon Valley-based software company that provides technology to financial institutions to serve consumer banking customers. I know how important Silicon Valley Bank has been and continues to be to the success of its clients and the innovation ecosystem.
We are trying to restore your trust and support you and your companies at this time.
Thank you with best wishes,
CEO, Silicon Valley Bank, NA.”
AllNews Nigeria felicitates with the new management of Silicon Valley Bank, NA, under the leadership of Timothy Mayopoulos.
This is the kind of remedial process recommended by our stables a few days ago instead of an outright auctioning of the former SVB assets.
Indeed, the world cannot afford to pretend over the strategic relevance of SVB to the tech world in general and startups in particular.
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