Silicon Valley Bank’s new CEO Tim Mayopoulos assured clients Monday that the lender is “open” and “conducting business as usual” — after the stunning collapse of the nation’s 16th-largest bank sparked fears of a major economic crisis.
The Federal Deposit Insurance Corporation (FDIC) named Mayopoulos to lead the newly created bridge bank, named Silicon Valley Bank N.A., Monday after federal regulators shuttered the start-up-focused lender Friday.
A bridge bank is a temporary institution that has been authorized by a financial regulator to operate a failed or insolvent bank until a buyer is found or the bank’s assets are liquidated, according to Investopedia.
The FDIC transferred all deposits of the defunct SVB Financial Group to Silicon Valley Bank N.A.
Mayopoulos, who succeeds former CEO Greg Becker, sent clients a lengthy email to say that the lender remains open and operating normally, according to Reuters.
“Silicon Valley Bank, N.A. is open and conducting business as usual. We are here to serve you,” wrote Mayopoulos, the former head of Fannie Mae.
“I recognize the past few days have been an extremely challenging time for our clients and our employees, and we are grateful for the support of the amazing community we serve. I have joined the company as CEO starting today,” he wrote.
Mayopoulos explained that the FDIC has “transferred all deposits and substantially all assets of the former Silicon Valley Bank to a newly created, full-service FDIC-operated ‘bridge bank’ in an action designed to protect all depositors of Silicon Valley Bank.”
He assured depositors that they “have full access to their money.”
“I come to this role with humility. I also come to this role with experience in these kinds 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 I served as the CEO of Fannie Mae from 2012-18,” he wrote.
Mayopoulos also noted that he served as president of a Silicon Valley-based software firm “that provides technology to financial institutions to serve their 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,” he wrote.
“We look to restore your confidence and support you and your companies at this time,” the CEO added.
Silicon Valley Bank executive Gerald Brady praised Mayopoulos for the email.
“Love seeing this note from our new CEO at SVB — thanks Tim Mayopoulos for a clear message: we are open for business and your deposits are protected,” he said in a tweet.
SVB’s fall from grace is the largest US bank collapse since the 2008 economic crisis.