Amidst the Bankruptcy, the New SVB CEO Urges Client That the Bank Is Open for Buisness

SVB, also known as Silicon Valley Bank, recently experienced a significant setback as it faced bankruptcy. However, the newly appointed CEO, Tim Mayopoulos, has urged clients to return to the bank, reassuring them that it is "open for business" and ready to receive and hold customer deposits.

In an email to clients and a post on the bank's website, Mayopoulos requested that clients who had moved funds elsewhere in the past week consider diversifying their deposits by returning some of them to SVB.

He emphasized that depositors have full access to their money and that both fresh inflows and existing deposits are fully protected by the Federal Deposit Insurance Corporation (FDIC).

Mayopoulos also stated that supporting the bank's deposit base is crucial for its future. He requested that clients leave deposits with Silicon Valley Bridge Bank and transfer back deposits that had left the bank over the last several days. 

This call to action comes after more than $40 billion in deposits were withdrawn from the bank following a mid-quarter report that showed the bank had sold $21 billion worth of securities at a loss.

Despite facing the second-largest bank failure in US history, SVB's situation has been stabilized by federal regulators who intervened over the weekend, guaranteeing that depositors would not suffer losses. 

Mayopoulos did not specify any limits on FDIC protection, but federal regulators have assured depositors that they will be fully protected. However, it is important to note that the FDIC is only mandated to insure $250,000 worth of deposits per customer.

In conclusion, SVB's new CEO has made it clear that the bank is ready to get back to business and has reassured clients that their deposits are protected by the FDIC. Mayopoulos has called on clients to support the bank by leaving deposits with Silicon Valley Bridge Bank and transferring back deposits that had left the bank over the last several days. It remains to be seen whether clients will heed this call to action and help rebuild the bank's deposit base.