Amidst the nearer of Silicon Valley Financial institution (SVB) by the banking regulators in California, Twitter chief Elon Musk on Saturday mentioned that he’s open to the concept of shopping for the financial institution and turning it right into a digital financial institution. Silicon Valley Financial institution (SVB) is a serious US lender for enterprise capital-backed firms, particularly for tech start-ups. The closing of SVB is seen as the most important financial institution failure since Washington Mutual in the course of the top of the 2008 monetary disaster.
Elon Musk’s remark got here as a reply to a tweet. Min-Liang Tan, co-founder and CEO of Razer tweeted: “I believe Twitter can purchase SVB and change into a digital financial institution”.
To which Musk replied: “I am open to the concept”.
I’m open to the concept
— Elon Musk (@elonmusk) March 11, 2023
The tweet by Min-Liang Tan additionally introduced many humorous replies from different customers. One of many customers wrote, “elon musk can be like “y’all are nervous about contagion from SVB? i AM the contagion!”
elon musk can be like “y’all are nervous about contagion from SVB? i AM the contagion!”
— Shibetoshi Nakamoto (@BillyM2k) March 11, 2023
In keeping with a report by Related Press (AP), SVB failed after depositors largely expertise staff and enterprise capital-backed firms started withdrawing their cash making a run on the financial institution.
Additionally Learn: Major US Tech Lender Silicon Valley Bank Closed, Here Is What Led To This Crisis
With $210 billion in belongings, Silicon Valley Financial institution ranks because the sixteenth largest financial institution within the US, in keeping with the AP report. It mentioned that the financial institution labored as a monetary lender for enterprise capital-backed companies, which have been severely impacted over the previous 18 months on account of the Federal Reserve elevating rates of interest and lowering investor demand for dangerous digital belongings.
The Federal Deposit Insurance coverage Company (FDIC), which generally protects deposits as much as $2,50,000, mentioned it had taken cost of the roughly $175 billion in deposits held on the financial institution.