American businessman, founder of Tesla and SpaceX Elon Musk allowed the purchase of bankrupt Silicon Valley Bank (SVB). According to RBC, Musk announced this on the social network.
“I am open to this idea,” Musk wrote. So he responded to a comment from a user who suggested that Musk buy SVB and turn it into an electronic bank.
The bankruptcy of SVB became known on March 11 – this is the largest bankruptcy of the bank since the 2008 crisis. The bank ranked 16th in terms of assets in the country and was one of the most prominent lenders in the tech start-up industry. Back in 2022, it was estimated at $40 billion, and its capitalization has grown rapidly over the past five years.
SVB’s problems began after the closure of a similar start-up lender, Silvergate Bank, which caused concern in the market and the rapid sale of industry shares by investors. On March 8, SVB clients sharply increased the amount of funds withdrawn from their accounts, the bank took emergency measures in this regard. Investors also began dumping SVB peers, including Signature Bank, Western Alliance and First Republic. Reuters wrote about Moody’s plans to downgrade the credit institution, which could also push it into bankruptcy.
After the bankruptcy of SVD, the US Treasury assured of the stability of the country’s financial system, the Federal Deposit Insurance Corporation decided to appoint its own manager to the credit institution, putting almost $175 billion of customer deposits under its control.
Source: Rosbalt
Mario Twitchell is an accomplished author and journalist, known for his insightful and thought-provoking writing on a wide range of topics including general and opinion. He currently works as a writer at 247 news agency, where he has established himself as a respected voice in the industry.
