Elon Musk allowed the purchase of Silicon Valley Bank, the largest failed bank in the United States
The CEO of Razer from Singapore proposed to turn the financial institution into a digital bank. The billionaire said he was open to such an idea.
American businessman, founder of Tesla and SpaceX, Elon Musk, allowed the purchase of Silicon Valley Bank (SVB). The businessman wrote about this on Twitter on March 11.
Singaporean businessman, CEO of gaming equipment company Razer Inc. Ming-Liang Tan suggested that Twitter consider buying SVB and turning it into a digital bank.
“I’m open to the idea,” Musk told him.
Some users supported Musk’s idea, while others asked him to sell $20 billion worth of Tesla shares.
Bankruptcy of Silicon Valley Bank was the largest since the crisis of 2008
The bankruptcy of SVB became known on March 11, the financial institution is considered the largest creditor of startups. Entrepreneurs immediately began to look for loans to pay salaries to employees.
The bank was the 16th largest in terms of assets in the US, with 17 branches in California and Massachusetts. At the close of business on March 9, the bank had a negative cash balance of $958 million.
SVB ran into trouble after venture capital firm Founders Fund and other high-profile firms advised companies to move capital out of there.
Reuters wrote about the plans of the international agency Moody’s to downgrade the rating of SVB. It also played a significant role in his bankruptcy.
The US Treasury after the bankruptcy of SVB assured Americans of the stability of the country’s financial system. The US Federal Deposit Insurance Corporation (FDIC) has begun monitoring $175 billion in customer deposits.