After Twitter, Elon Musk Wants to Buy Silicon Valley Bank
Elon Musk continues to try to widen his business. After buying the Twitter microblogging application, Elon Musk is now planning to buy Silicon Valley Bank.
quoted The telephone from Gizmochina on Sunday (12/03/2023), Silicon Valley Bank (SVB) was closed by regulators, and its assets were confiscated by the Federal Deposit Insurance Corporation (FDIC).
The bank, which served customers in the technology industry, including tech workers, startups and venture capital backed companies, closed as it was one of the victims of the global financial crisis in 2008.
After 10 plus years of being closed, recently the FDIC has formed Deposit Insurance National Bank of Santa Clara to hold insured deposits from SVB, which will continue to clear through checks Main office and all SVB branches will reopen on March 13, 2023.
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Later insured depositors will have full access to their deposits by Monday morning. However, it is not clear how the account or channel of credit will be.
Moreover, standard FDIC insurance covers up to USD 250,000 or IDR 3.8 billion per depositor. In the midst of uncertainty regarding the fate of Silicon Valley Bank, Razer CEO Min-Liang Tan via his Twitter account suggested that Twitter consider buying SVB and turning it into a digital bank.
Not unexpectedly, Min-Liang Tan’s tweet received a reply from Twitter CEO, Elon Musk. According to Elon Musk, he is open to the idea of buying Silicon Valley Bank.
“I think Twitter should buy SVB and become a digital bank,” tweeted @minliangtan.
“I’m open to the idea,” replied Elon Musk.
I’m open to the idea
— Elon Musk (@elonmusk) March 11, 2023
This potential acquisition could mark Twitter’s foray into the fintech space, as the company has been looking for ways to expand its business. By acquiring SVB, Twitter can leverage its large user base and strong brand to establish itself as a major player in the digital banking industry.
Until this news was written, there has been no official confirmation or further information regarding the billionaire’s comments.
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SVB specializes in start-up financing and is already the 16th largest US bank by assets, with USD 209 billion in assets and approximately USD 175.4 billion in deposits.
The bank’s problems were sparked by customer withdrawals that led companies to liquidate positions in securities whose value had plummeted as a result of the Federal Reserve’s interest rate hike.
