Elon Musk, the CEO of Tesla and the new owner of Twitter, recently said that US regulators are “open to the idea” of buying Silicon Valley Bank (SVB), which was shut down on Friday due to deposits.
According to Business Insider, Twitter owner and Tesla CEO Elon Musk said in a recent tweet that he is “open to the idea” of buying the Silicon Valley bank after the company closes. The US regulator is a deposit-related financial institution. through customers. While some social media users supported the idea, Tesla investors expressed their reservations.
SANTA CLARA, CALIFORNIA – MARCH 10: People line up outside Silicon Valley Bank’s (SVB) indoor headquarters on March 10, 2023 in Santa Clara, California. (Photo by Justin Sullivan/Getty Images)
The startup’s founders began receiving cash from SVB on Thursday after the bank’s share price fell following the capital raising announcement late Wednesday. The fact that receivers are now responsible for the bank can significantly delay access to deposits.
Breitbart News reporter John Carney discussed the situation, writing:
The collapse of the Silicon Valley bank was triggered by a massive run on the bank, with customers beginning to withdraw $42 billion this week.
The bank was taken over by the Federal Deposit Insurance Corporation on Friday after the California Department of Financial Protection and Innovation (DFPI) found the bank insolvent.
According to the DFPI, the bank was in “sound financial condition” prior to the operation. Customers withdrew $42 billion, leaving the bank with a negative cash balance of $958 million.
Here is a summary of what has happened since DFPI took over the bank:
“On March 8, 2023, the Bank announced a loss of approximately $1.8 billion on the sale of investments (US Treasuries and mortgage-backed securities). On March 8, 2023, the Bank Holding announced that the capital increase would be carried out. Although the bank was in good financial condition until March 9, 2023, investors and depositors responded by beginning to withdraw $42 billion in deposits from the Bank on March 9, 2023, which dealt a blow to the Bank. As of the close of business on March 9, the bank had a negative cash balance of approximately $958 million. Despite efforts by the Bank to transfer collateral from various sources with the help of regulators, the Bank was unable to meet its cash letter from the Federal Reserve. The hasty withdrawal of deposits has resulted in the Bank not being able to pay its obligations on time, and the Bank is now insolvent.
Before its collapse, the Silicon Valley bank was the 16th largest bank by assets at the US Federal Reserve System, which shows the bank had $209 billion in assets as of December 31, 2022.
Ming-Liang Tan, founder and CEO of Razer, a company that sells computers and gaming peripherals, wrote: “I think Twitter should buy SVB and become a digital bank.” Musk replied, “I’m open to that idea.”
I am open to the idea
— Elon Musk (@elonmusk) March 11, 2023
A Twitter user supported the idea, saying “what an opportunity”. But Sanjay, a Twitter user and Tesla investor whose Twitter profile describes him as a “Tesla customer and investor, bull and Elon fan,” said: “And sell another $20 billion worth of stock. Tesla Company. No thanks!”
Tesla’s share price has been negatively affected by Musk’s series of Tesla stock sales last year to pay for the acquisition of Twitter. It sold 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 $23 billion. amounted to dollars.
Learn more on Business Insider.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship. Follow him on Twitter @LucasNolan
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