New SVB CEO Urges Top Venture Capital Clients To Move Deposits Back

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. after the regulator took control of SVB. Its collapse last week crippled stocks and triggered concerns of a contagion throughout global markets.

SVB was a major lender for startups, serving as banking partner for nearly half of U.S. venture-backed technology and healthcare companies that listed on stock markets in 2022. Last week, more than 650 funds signed a letter vowing to keep working with the bank if it found a new buyer.