The new SVB CEO, Tim Mayopoulos, surprised clients with his email stating Silicon Valley Bank N.A. is not only open but also conducts business as usual.
Following the recent collapse, Silicon Valley Bank's CEO, Gregory W. Becker, was removed from his duties by the government. Tim Mayopoulos, a veteran financial manager, took over his responsibilities on Monday morning and emailed all the customers to start things off. Most clients were surprised as Mayopoulos said the bank is conducting business as usual, despite the challenging days.
According to Reuters, Mayopoulos sent out a "promising" email to clients but needs time to provide more information about the current state and future plans. "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," said Mayopoulos in the letter.
New CEO of SVB sent this email to all clients:
"Dear Clients:
Silicon Valley Bank, N.A. is open and conducting business as usual. We are here to serve you. I recognize the past few days have been an extremely challenging time for our clients and our employees, and we are… https://t.co/rMVpg0wL3x— Sheel Mohnot (@pitdesi) March 13, 2023
Mayopoulos also shared some "immediate notes" that concern customers:
- All existing deposits are protected by the FDIC.
- All NEW deposits are also protected by the FDIC.
- All wire payments entered on March 9 or 10 that have not already processed have since been cancelled. If you wish to consummate those transactions, you need to reinitiate them.
- We are conducting business as usual within the U.S. and expect to resume cross-border transactions in the coming days.
Who is Tim Mayopoulos?
The 64-year-old Mayopoulos has been appointed the new SVB CEO, but you might wonder about his past and career. His full name is Timothy Mayopoulos, and he has a bachelor's degree in English from Cornell University. Before becoming Fannie Mae's CEO, he worked for three different banks in the past Deutsche Bank, Credit Suisse, and Bank of America.
The U.S. Federal Deposit Insurance Corporation created a new entity, named Silicon Valley Bank N.A., and named Mayopoulos as the new CEO. He uses his knowledge of the 2008 recession to help the fledgling bank navigate this difficult time.
On the other hand, Greg Becker "is accused of mishandling the situation and not trying hard enough to prop up his sinking bank before being removed as CEO," says Daily Mail.
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