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New Silicon Valley Bank CEO is ‘conducting business as usual’

Reuters/Nathan Frandino
Customers gathered outside the Silicon Valley Bank headquarters in Santa Clara as news of the collapse spread

The new boss of Silicon Valley Bank, Tim Mayopoulos, on Monday told clients that the lender is open and conducting business as usual, according to a letter seen by Reuters.

Earlier in the day, the US Federal Deposit Insurance Corporation had tapped former Fannie Mae head Mayopoulos as CEO of the newly created entity, named Silicon Valley Bank NA, after the regulator took control of SVB following its collapse that crippled stocks and triggered concerns of a contagion throughout global markets.

The regulator transferred all deposits of Silicon Valley Bank to this newly created bridge bank and had said all depositors will have access to their money beginning Monday morning.

In the letter to clients, Mayopoulos said that the bank will provide more information as soon as it was available.

“I look forward to getting to know the clients of Silicon Valley Bank. 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,” Mayopoulos added in the letter.

SVB Financial Group on Friday became the largest bank to fail since the 2008 financial crisis, roiling markets and leaving billions of dollars belonging to companies and individuals stranded.

Meanwhile, the Middle East faces an anxious wait to fully understand the impact of the demise of SVB.

Mohammad Alblooshi, head of Dubai International Financial Centre’s Fintech Hive, which consists of more than 650 fintech startups, said it had been a “nervous” time over the weekend.

“When a major bank collapses, it reminds us of 2008,” he said.