- Silicon Valley Bank has a new CEO, Tim Mayopoulos.
- Mayopoulos succeeds the bank’s former CEO, Greg Becker.
- Mayopoulos sent a letter to customers on Monday saying the bank is “open and conducting business as usual.”
Bank of Silicon Valley new CEO Tim Mayopoulos sent a letter to customers on Monday, addressing the bank’s collapse and reassuring them that the bank is “open and doing business as usual.”
Mayopoulos, who previously ran mortgage financier Fannie Mae, acknowledged in the letter that “the past few days have been an extremely difficult time for our customers and employees.”
“I come to this position with humility. I also come to this position with experience in these kinds of situations. I was part of the new management team that joined Fannie Mae following the financial crisis of 2008-09, and served as CEO of Fannie Mae from 2012 to 2018,” 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 sparked a bank rush, 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 has been widely circulated online, has been confirmed by Gerald Brady, CEO of Silicon Valley Bank.
“Love to see this note from our new SVB CEO – thank you 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 sent by Mayopoulos here.
“Dear clients :
Silicon Valley Bank, NA is open and conducting business as usual.
We are here at your service. I recognize that the past few days have been an extremely difficult time for our customers and employees, and we are grateful for the support of the incredible community we serve. I joined the company as CEO starting today.
Over the weekend, the FDIC transferred all of the deposits and nearly all of the assets of the former Silicon Valley Bank to a newly formed, FDIC-operated, full-service “bridging bank” under a action designed to protect all Silicon Valley Bank depositors. Depositors have full access to their money and new and existing deposits are protected. You can find out more in the press release issued today.
A few immediate notes:
- All existing deposits are protected by the FDIC.
- All NEW deposits are also FDIC protected.
- All EFTs entered on March 9 or 10 that have not yet been processed have since been cancelled. If you want to perform these transactions, you must rerun them.
- We are continuing with business as usual in the United States 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 it becomes available.
I look forward to getting to know the customers of Silicon Valley Bank. I come to this position with humility. I also come to this position with experience in this type of situation. I was part of the new management team that joined Fannie Mae following the financial crisis of 2008-09, and I was CEO of Fannie Mae from 2012-18. I am very proud of the work we have done there accomplished to restore the company’s profitability and stabilize the housing finance system in a time of unprecedented challenge.
I also come with a background and appreciation for innovation economics. Until recently, I was 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 customers and the innovation ecosystem.
We seek to restore your confidence and support you and your businesses at this time.
Thank you, sincerely,
Tim Mayopoulos
CEO, Bank of Silicon Valley, North America