Open to the idea: Elon Musk on shutdown of Silicon Valley Bank

In a video message, SVB chief, Greg Becker told employees that he is working with banking regulators to find a partner for the bank. “There is no guarantee that a deal will be struck,” he said.

US Regulators on Friday announced the shutdown of the Silicon Valley Bank (SVB).

The regulators also seized all the assets of the SVB. The biggest failure of a bank since 2008 stranded billions of Dollars belonging to companies and investors.

Amidst the ongoing crisis, Razer CEO, Min-Liang Tan got on to Twitter and said, "I think Twitter should buy SVB and become a digital bank.

"I'm open to the idea," the Twitter chief responded.

SVB which is a start-up focused lender was shut down by regulators after its stocks plummeted by 60 per cent.

The mayhem began when SVB on Thursday announced a stock offering and offloaded securities to raise much-needed cash as it struggled with failing deposits. The firm's acres collapsed 60 per cent in New York and trading was suspended before regulators that the bank had been closed down.

In a video message, SVB chief, Greg Becker told employees that he is working with banking regulators to find a partner for the bank. "There is no guarantee that a deal will be struck," he said.

The Silicon Valley Bank was forced to shut shop, despite being hailed as America's best banks by Forbes magazine.

The SVB Financial Group which is the parent company of the Silicon Valley Bank was placed at 20th in the list of America's best banks.

"Proud to be on Forbes' annual ranking of America's Best Banks for the 5th straight year and to have also been named to the publication's inaugural Financial All-Stars list," the SVB Financial Group had said in a tweet on March 7.

The Silicon Valley Bank, which was founded in the year 1983 operated out of Santa Clara in California. It provided various series such as online banking, foreign exchange trade and treasury management.

The startup funding also began drying yo after the COVID-19 pandemic, which resulted in a large number of the bank's clients withdrawing money. Silicon Valley Bank was forced to sell some of its investments, when thought the value declined to honour requests of their clients.

The bank in a disclosure earlier this week said it had lost nearly $2 billion.

The FDIC has created a new bank, the National Bank of Santa Clara, which will now hold the assets of the Silicon Valley Bank.

FDIC would have full access to the insured deposits after all the branches of the bank open on Monday morning. The financial body also said that the cheques of the old bank will also be honoured.