- Silicon Valley Bank has a new CEO, Tim Mayopoulos.
- Mayopoulos succeeds the bank's former CEO, Greg Becker.
Silicon Valley Bank's new CEO Tim Mayopoulos sent a letter to clients on Monday, addressing the bank's collapse and reassuring them that the bank is "open and conducting business as usual."
Mayopoulos, who previously headed up mortgage financier Fannie Mae, acknowledged in the letter that "the past few days have been an extremely challenging time for our clients and our employees."
"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 added.
Mayopoulos — who succeeds former CEO Greg Becker — joins at an extremely tumultuous time for the bank. Silicon Valley Bank imploded last week when depositors triggered a bank run, after the bank tried and failed to raise capital. The Federal Deposit Insurance Corporation then stepped in and took control of the bank on Friday.
The veracity of the letter, which was widely circulated online, was confirmed by Silicon Valley Bank executive Gerald Brady.
"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," Brady tweeted on Monday.
—Gerald Brady (@gezbrady) March 13, 2023
Read the letter Mayopoulos sent here.
"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 grateful for the support of the amazing community we serve. I have joined the company as CEO starting today.
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. Depositors have full access to their money and new and existing deposits are protected. You can read more in the press release issued today.
A few immediate notes:
- 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 US and expect to resume cross-border transactions in the coming days.
We know many of you have questions and we appreciate your patience as our dedicated team works as quickly as possible to serve you. More information will be provided as soon as it is available.
I look forward to getting to know the clients of Silicon Valley Bank. 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. I am very proud of work we did there to restore the company to profitability and to stabilize the housing finance system in a period of unprecedented challenge.
I also come with experience in and an appreciation for the innovation economy. Until recently, I was the president of a Silicon Valley-based software company 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.
We look to restore your confidence and support you and your companies at this time.
Thank you and best regards,
Tim Mayopoulos
CEO, Silicon Valley Bank, N.A.