(SNews) – Twitter boss Elon Musk has revealed that he’s interested in buying the collapsed Silicon Valley Bank.
As Slay News reported, Silicon Valley Bank (SVB) was shut down by California regulators on Friday.
All of the bank’s assets have been seized and the Federal Deposit Insurance Corporation has been named as the receiver.
SVB was the 16th largest bank in the United States.
“Silicon Valley Bank has been closed by the California Department of Financial Protection and Innovation, and the Federal Deposit Insurance Corporation (FDIC) has been appointed receiver, becoming the first FDIC-backed institution to fail this year,” Market Watch reported.
“The news comes amid a crisis at parent SVB Financial Group SIVB, which lost a record 60% of its value on Thursday after it disclosed large losses from securities sales and announced a dilutive stock offering along with a profit warning.
“The FDIC said all insured depositors will have full access to their accounts no later than Monday morning,” the outlet added.
“Uninsured depositors will get a receivership certificate and may be entitled to dividends once the FDIC sells the bank’s assets.”
The bank reportedly holds $173 billion in deposits.
The collapse is so severe that it could cause a recession.
The company provided funding to 44% of all venture capital-backed tech and healthcare companies that were publicly listed on a stock exchange last year, according to its website.
Silicon Valley Bank holds $173B of deposits.
Fed interest rate is at 4.57%
SVB's $117B of securities (MBS) yield 1.56-1.66%
This is causing a bank run
If enough VC / tech cos pull their money,
—SVB may be bankrupt
—Many startups may be wiped out
—Crash may cause a recession! pic.twitter.com/wA38Mx1edb
— Deedy (@debarghya_das) March 10, 2023
Customers have tried to pull millions of dollars out of the bank but have been unable to.
Online banking and mobile services showing unavailable for some customers after the Feds shut the bank down.
Good Morning Everyone! Silicon Valley Bank is getting worse. Customers trying to pull millions of dollars out and can’t. Online banking and mobile services showing unavailable for some customers.
Stock down 60% pre-market.
— Genevieve Roch-Decter, CFA (@GRDecter) March 10, 2023
CEO of gaming hardware company Razer Min-Liang Tan recently proposed that Twitter acquire SVB and convert it into a digital bank.
Musk replied to his tweet, saying, “I’m open to the idea.”
I think Twitter should buy SVB and become a digital bank.
— Min-Liang Tan (@minliangtan) March 11, 2023