Elon Musk, CEO of Tesla and new owner of Twitter, recently said he was “open to the idea” of buying Silicon Valley Bank (SVB), which was closed by US regulators on Friday due to an influx of deposits.
Business interested reports In a recent response to a tweet, Twitter owner and Tesla CEO Elon Musk stated he was “open to the idea” of buying Silicon Valley Bank after the financial institution was shut down by the US regulator due to a run on deposits. While some social media users supported the idea, Tesla investors expressed their reservations.
SANTA CLARA, CA – MARCH 10: People line up outside the Silicon Valley Bank (SVB) headquarters on March 10, 2023 in Santa Clara, California. (Photo by Justin Sullivan/Getty Images)
Startup founders began withdrawing funds from SVB on Thursday as a result of the bank’s share price plummeting after it announced a capital raise Wednesday night. The fact that the recipients are now in charge of the bank may lead to severe delays in reaching the deposit.
Breitbart News reporter John Carney discussed the situation, writing:
The Silicon Valley bank collapse was triggered by a massive bank run, as customers began withdrawing $42 billion this week.
The bank was placed into federal deposit insurance receivership on Friday after the California Department of Financial Protection and Innovation (DFPI) determined that the bank had become insolvent.
Before the bank run, the bank was “in sound financial shape,” according to the DFPI. The customers withdrew $42 billion, leaving the bank with a negative cash balance of $958 million.
Here is a summary of what happened from DFPI The order to seize the bank:
On March 8, 2023, the bank announced a loss of approximately $1.8 billion from the sale of investments (US Treasurys and mortgage-backed securities). On March 8, 2023, the bank’s holding company announced that it was conducting a capital increase. The bank was in good financial shape before March 9, 2023. Investors and depositors reacted by starting to withdraw $42 billion in deposits from the bank on March 9, 2023, causing a run on the bank.As of the closing of business on March 9, the bank had Negative cash balance of about $958 million.Despite attempts by the Bank, with the help of regulators, to divert collateral from various sources, the Bank has not fulfilled its cash message with the Federal Reserve.The rapid withdrawal of deposits has caused the Bank to be unable to pay its liabilities when due The bank is now insolvent.”
Prior to its collapse, Silicon Valley Bank was the 16th largest bank by assets in US Federal Reserve data Offers The bank had assets of $209 billion as of December 31, 2022.
“I think Twitter should buy SVB and become a digital bank,” tweeted Min-Liang Tan, co-founder and CEO of Razer, a company that sells gaming PCs and peripherals. Musk replied, “I’m open to the idea.”
I am open to the idea
– Elon Musk (@elonmusk) March 11, 2023
One Twitter user was supportive of the idea, saying “what an opportunity.” But another Twitter user and Tesla investor named Sanjay, whose Twitter profile describes him as a “Tesla customer and investor, bull and Elon fan,” said: “And selling another $20 billion worth of Tesla stock. No thanks!”
Tesla’s share price was negatively affected by Musk’s series of sales of Tesla stock last year to pay for his purchase of Twitter. He sold the shares for $8.5 billion in April, $6.9 billion in August, $3.95 billion in November and $3.6 billion in December, for a total of about $23 billion.
Read more Business Insider here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and internet censorship. Follow him on Twitter @employee
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