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☆ ‘I am personally sticking with SVB.’ Prominent tech figures pledge support for bank
▼ + stars: | 2023-03-16 | by ( Catherine Thorbecke | ) edition.cnn.com time to read: +3 min

CNN —After a rollercoaster week for Silicon Valley Bank’s customers, some prominent voices in the tech world are now publicly saying they will keep their money with the embattled lender – and they’re urging others to do the same. It also comes after the regional bank’s saga sent shockwaves across global financial markets. The push to continue doing business with Silicon Valley also highlights the unique relationship between the tech lender and the startup community, and their mutual dependence on each other. The bank has worked with nearly half of all US venture-backed tech and health care companies. But not everyone shares the desire to stay loyal to the bank after its implosion.

☆ US CFTC to give pass over certain swap reporting failures tied to SVB, Signature Bank contracts
▼ + stars: | 2023-03-16 | by ( ) www.reuters.com time to read: +1 min

WASHINGTON, March 16 (Reuters) - The U.S. Commodity Futures Trading Commission on Wednesday said it would give a pass to firms that cannot meet certain swap reporting requirements following the recent failures of Silicon Valley Bank (SIVB.O) and Signature Bank (SBNY.O). The Commission will not launch enforcement actions against any counterparties that cannot meet agency reporting requirements for swaps contracts solely from the FDIC transfers, it said. Those may include business conduct, margin, clearing and trade execution requirements. Firms should "should use best efforts to fulfill their reporting obligations with respect to such swaps," the CFTC said. Reporting by Chris Prentice, Kanishka Singh, Rami Ayyub and Ismail ShakilOur Standards: The Thomson Reuters Trust Principles.

☆ Canadian regulator takes permanent control of SVB's Canadian assets
▼ + stars: | 2023-03-15 | by ( ) www.reuters.com time to read: +1 min

March 15 (Reuters) - Canada's financial regulator said on Wednesday it had taken permanent control of the assets of Silicon Valley Bank's Canadian branch and was winding up the institution. "I took this action to effect an orderly transition of the Canadian branch of Silicon Valley Bank to the FDIC bridge bank," said Peter Routledge, superintendent of financial institutions. OSFI said an orderly, court-supervised process would allow operations of the Silicon Valley Bank unit to continue. The Canadian business is focused primarily lending to corporate clients and does not hold any commercial or individual deposits. OSFI said on Sunday said it was taking temporary control of Silicon Valley Bank's Canadian unit.

☆ The CEO of Silicon Valley Bridge Bank is asking customers to return. But spooked Americans are moving billions out of smaller banks and into Wall Street giants.
▼ + stars: | 2023-03-15 | by ( Huileng Tan | ) www.businessinsider.com time to read: +3 min

The CEO of Silicon Valley Bridge Bank asked customers to move their money back to the bank. US depositors have been moving billions of dollars from smaller to larger banks, per Reuters. The bridge bank, which opened on Monday, is a new lender created by the Federal Deposit Insurance Corporation, which took over the deposits of the Silicon Valley Bank. His statements come just as US depositors are moving billions away from smaller banks after the collapse of Silicon Valley Bank and Signature Bank, New York, Reuters reported Tuesday. Both Silicon Valley Bank and Signature Bank, New York, experienced runs on deposits that led to their closures.

☆ Four days of panic: How startup execs navigated SVB's meltdown and prepared for the worst
▼ + stars: | 2023-03-15 | by ( Ari Levy | ) www.cnbc.com time to read: +8 min

A Silicon Valley Bank worker talks with people lining up outside of the bank office on March 13, 2023 in Santa Clara, California. Refreshing GoogleOtter.ai founder and CEO Sam Liang spent Monday driving to SVB branches in Silicon Valley to try and retrieve millions of dollars of his company's money. "I checked Google like 20 times an hour, watched [Treasury Secretary Janet] Yellen talking about not bailing out Silicon Valley Bank." Silicon Valley Bank customers listen as FDIC representatives, left, speak with them before the opening of a branch SVBs headquarters in Santa Clara, California on March 13, 2023. "But at the moment, as long as Silicon Valley Bridge Bank is 100% federally guaranteed, there's no need to diversify.

☆ Silicon Valley Bank 'conducting business as usual', new CEO says
▼ + stars: | 2023-03-14 | by ( ) www.reuters.com time to read: +1 min

March 13 (Reuters) - Silicon Valley Bank's new boss Tim Mayopoulos on Monday told clients that the lender is open and conducting business as usual, according to a letter seen by Reuters. 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.

☆ Read the letter Silicon Valley Bank's new CEO sent to the bank's clients, addressing the bank's collapse and saying it's 'business as usual'
▼ + stars: | 2023-03-14 | by ( Cheryl Teh | ) www.businessinsider.com time to read: +4 min

Silicon Valley Bank imploded last week when depositors triggered a bank run, after the bank tried and failed to raise capital. The veracity of the letter, which was widely circulated online, was confirmed by Silicon Valley Bank executive Gerald Brady. Over the weekend, the FDIC 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. I know how important Silicon Valley Bank has been and continues to be to the success of its clients and the innovation ecosystem. Thank you and best regards,Tim MayopoulosCEO, Silicon Valley Bank, N.A.

☆ Silicon Valley Bank employees brace for layoffs as the bank reopens for business under a new CEO and walks back 1.5 times pay offer
▼ + stars: | 2023-03-14 | by ( Emmalyse Brownstein | ) www.businessinsider.com time to read: +5 min

Silicon Valley Bank is telling customers and employees that it's back to business as usual. The new CEO is also walking back a previous offer to pay employees 1.5 times pay for 45 days. The bank's leadership was removed and deposits shifted to the newly formed Silicon Valley Bridge Bank N.A., the so-called bridge bank that is being overseen by a Mayopoulos. Neither Silicon Valley bank nor the FDIC responded to Insider's request for comment. Starting today, employees will have continuous employment with the bridge bank and therefore the 45-day employment period no longer applies.

☆ Private equity firms Apollo and KKR among those reviewing Silicon Valley Bank loans
▼ + stars: | 2023-03-14 | by ( Seema Mody | ) www.cnbc.com time to read: +1 min

People wait outside the Silicon Valley Bank headquarters in Santa Clara, CA, to withdraw funds after the federal government intervened upon the bank's collapse, on March 13, 2023. Two of those people said Apollo may be interested in acquiring a piece of the business at par. Private equity firms Apollo Global Management and KKR are among the parties reviewing a book of loans held by Silicon Valley Bank, people familiar with the discussions told CNBC. Previously, Bloomberg reported that several private equity firms have been conducting due diligence on the loan assets. That report, which cited several people with knowledge of the talks, said Apollo, Ares Management , Blackstone , Carlyle Group and KKR were among those reviewing a potential deal.

☆ New SVB CEO urges top venture capital clients to move deposits back
▼ + stars: | 2023-03-14 | by ( Krystal Hu | ) www.reuters.com time to read: +2 min

March 14 (Reuters) - Silicon Valley Bank's new Chief Executive Tim Mayopoulos on Tuesday urged the failed bank's top venture capital clients to move their deposits to its newly created bridge entity, people who attended a virtual meeting with him said. The Federal Deposit Insurance Corporation (FDIC) appointed the former Fannie Mae CEO to head Silicon Valley Bridge Bank N.A. Mayopoulos told clients deposits at the bank were now among the safest of any U.S. banks or institutions, attendees at the meeting said. Hemant Taneja, CEO of venture capital firm General Catalyst, recommended on Tuesday that its clients who had banked with SVB keep or return at least 50% of their capital to the bank. He has also served as general counsel of Bank of America, and held senior roles at Deutsche Bank, Credit Suisse First Boston, and Donaldson, Lufkin & Jenrette.

☆ SVB's new CEO urges clients to 'help us rebuild our deposit base'
▼ + stars: | 2023-03-14 | by ( Rohan Goswami | ) www.cnbc.com time to read: +2 min

A view of Silicon Valley Bank headquarters in Santa Clara, CA, after the federal government intervened upon the bankâs collapse, on March 13, 2023. "The number one thing you can do to support the future of this institution is to help us rebuild our deposit base, both by leaving deposits with Silicon Valley Bridge Bank and transferring back deposits that left over the last several days," Mayopoulos wrote. SVB's failure was the second-largest ever for a U.S. bank, behind the 2008 collapse of Washington Mutual. Federal regulators intervened over the weekend, guaranteeing that depositors would not suffer losses as the contagion threated to spread to other banks. The FDIC is only mandated to insure $250,000 worth of deposits per customer.

☆ What the FDIC takeovers of SVB and Signature mean for the banks’ customers and employees
▼ + stars: | 2023-03-14 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +4 min

No losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer.”A similar statement was issued for customers of Signature Bank. Most SVB customers, for instance, are businesses, and they have a lot more than $250,000 on deposit because they used SVB for much of their cash management, including payroll. SVB and Signature customers will have many of the same banking conveniences that they had before their banks were taken over. So far, the FDIC has not established any end dates of services for SVB or Signature customers. Should the FDIC find a buyer for either bank, the acquiring institution will be the one deciding whether the banks’ employees stay on.

☆ Fitch downgrades and withdraws Signature Bank's ratings
▼ + stars: | 2023-03-13 | by ( ) www.reuters.com time to read: 1 min

March 13 (Reuters) - Rating agency Fitch on Monday downgraded Signature Bank's (SBNY.O) long-term corporate ratings to 'D' from 'BBB+' after state regulators closed the New York-based bank on Sunday. Signature Bank's short-term corporate ratings were also downgraded to 'D' from 'F2', Fitch said, adding that all assets and deposits have transferred to Signature Bridge Bank, a successor bank operated by the FDIC. "Fitch Ratings is subsequently withdrawing the ratings of Signature Bank as the bank is under regulatory supervision," it said in a statement on Monday. Reporting by Akriti Sharma in Bengaluru Editing by Chris ReeseOur Standards: The Thomson Reuters Trust Principles.

☆ Biden vows new bank rules after SVB collapse, cites Trump rollback
▼ + stars: | 2023-03-13 | by ( Trevor Hunnicutt | ) www.reuters.com time to read: +4 min

"Americans can have confidence that the banking system is safe. The managers of the banks will be fired, Biden noted, and investors will lose money. Biden also promised new regulation after the biggest U.S. bank failure since the 2008 financial crisis. The U.S. Federal Deposit Insurance Corporation on Monday said it had transferred all Silicon Valley Bank (SIVB.O) deposits to a newly created bridge bank and that all depositors would have access to their money beginning Monday morning. Silicon Valley bank had $209 billion in assets at the end of last year.

☆ Biden to defend U.S. banking system after SVB, Signature collapse
▼ + stars: | 2023-03-13 | by ( Simon Lewis | ) www.reuters.com time to read: +4 min

WASHINGTON, March 13 (Reuters) - President Joe Biden will on Monday address a banking crisis that led U.S. regulators to step in with a series of emergency measures after the collapses of Silicon Valley Bank (SIVB.O) and Signature Bank <SBNY.O> threatened to trigger a broader crisis. Biden on Sunday hinted at new regulation of big banks after the biggest U.S. bank failure since the 2008 financial crisis, but faces a divided Congress unlikely to approve tougher new rules. Biden will give remarks on Monday morning on additional plans to keep the economy on track amid a crisis sparked by the sudden collapse of Silicon Valley Bank (SVB) last week, he added. POTENTIAL BANK CHANGESIn coming days, rules introduced after U.S. banks sparked a global financial crisis in 2008 with aggressive mortgage lending may come under the spotlight. Silicon Valley bank had $209 billion in assets at the end of last year.

March 12 (Reuters) - State regulators closed New York-based Signature Bank (SBNY.O) on Sunday, the third largest failure in U.S. banking history, two days after authorities shuttered Silicon Valley Bank (SIVB.O) in a collapse that stranded billions in deposits. All of the depositors of Signature Bank and Silicon Valley Bank will be made whole, and "no losses will be borne by the taxpayer," the U.S. Treasury Department and other bank regulators said in a joint statement. Signature's failure followed Silicon Valley Bank's Friday shutdown, the second largest in U.S. history behind Washington Mutual, which collapsed during the 2008 financial crisis. Signature Bank's depositors and borrowers will automatically become customers of the bridge bank, the FDIC said. Signature Bank cut ties with Trump in 2021 following the deadly Jan. 6 riots on Capitol Hill, and urged Trump to resign.

The U.S. Treasury Department and other bank regulators said in a joint statement on Sunday that all depositors of Signature Bank will be made whole, and "no losses will be borne by the taxpayer." Signature Bank reported deposit balances totaling $89.17 billion as of March 8. Representatives for Signature Bank did not immediately respond to a request for comment. The FDIC on Sunday established a "bridge" successor bank to Signature Bank, which will enable customers to access their funds on Monday. Signature Bank's depositors and borrowers will automatically become customers of the bridge bank, the FDIC said.

If a bank fails, insured deposits will be moved to another FDIC-insured bank or paid out. Checking accounts, savings accounts, money market accounts, and certificates of deposit are examples of FDIC-insured bank accounts. Single bank accounts and joint bank accounts are examples of different ownership categories. If you want to keep more money in the bank than the FDIC will insure, you could open another bank account at a separate bank. Aside from Silicon Valley Bank and Signature Bank, the last bank failure happened in October 2020.

☆ U.S. FDIC shifts SVB deposits to new bridge bank, names CEO
▼ + stars: | 2023-03-13 | by ( ) www.reuters.com time to read: +2 min

[1/2] A sign for Silicon Valley Bank (SVB) headquarters is seen in Santa Clara, California, U.S. March 10, 2023. In a statement, the FDIC said all customers of SVB would automatically become customers of the bridge bank, which will hold "normal banking hours and activities, including online banking." The regulator has also tapped former Fannie Mae head Tim Mayopoulos as the chief executive officer of the newly created entity, named Silicon Valley Bank N.A., it said. "All depositors of the institution will be made whole," FDIC said, adding that no bank losses would fall on U.S. taxpayers. "These actions will protect depositors and preserve the value of the assets and operations of Silicon Valley Bank, which may improve recoveries for creditors and the DIF," it added.

☆ FDIC names Tim Mayopoulos as CEO of Silicon Valley Bank
▼ + stars: | 2023-03-13 | by ( ) www.reuters.com time to read: 1 min

March 13 (Reuters) - The Federal Deposit Insurance Corporation on Monday named Tim Mayopoulos as the chief executive officer of Silicon Valley Bank, a subsidiary of the defunct SVB Financial Group (SIVB.O). Mayopoulos steps in after regulators shuttered the startup-focused lender on Friday after a run on its deposits that left it with a dearth of capital. The regulator has also transferred all deposits — both insured and uninsured — and substantially all assets of the bank to a newly created bridge bank. Reporting by Mehnaz Yasmin in Bengaluru; Editing by Sriraj KalluvilaOur Standards: The Thomson Reuters Trust Principles.

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