- Elon Musk may buy SIVB to become a digital bank.
- SIVB has been put under the control of the US Federal Deposit Insurance Corporation (FDIC).
- FDIC is to liquidate the bank’s assets and figure out how to refund customers.
Unusual Whales, the popular crypto market alerts provider, tweeted that Twitter CEO Elon Musk said he is “open to the idea” of buying the embattled Silicon Valley Bank (SIVB). Musk said he would buy SIVB and become a digital bank.
February 10, 2023, regulators in California closed down Silicon Valley Bank and put it under the control of the US Federal Deposit Insurance Corporation (FDIC). The current development puts FDIC in charge of liquidating the bank’s assets and figuring out how to refund customers.
The move caps a roller-coaster week for the tech-inclined bank, whose financial struggles led to wild speculation among stakeholders. SIVB’s struggles prompted some startups to consider withdrawing their funds and sparked fears of a ripple effect across the financial sector.
Emerging theories suggest a deliberate orchestration of SIVB’s collapse. Some stakeholders suggest a proper investigation into the issue that could expose what was behind the bank’s failure.
Caitlin Long, the founder of Custodia bank, tweeted that he believes some people in DC are pleased with the fall of SIVB. According to him, they wanted to bring to heel some of the most innovative banks and FinTech. Long’s theory earned the support of another Twitter user, Nic Carter, who proposed an inquest regarding the members of Congress who encouraged the start of the bank run due to their vendettas against crypto & tech.
SIVB’s collapse has heightened the level of uncertainty among the startup community. Several founders are worried about how to get out their funds and what could become of their businesses. Ashley Tyrner, the founder of health food delivery company FarmboxRx, was reportedly troubled over the development, wondering what would become of his company’s future.
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Source: https://coinedition.com/elon-musk-open-to-the-idea-of-buying-silicon-valley-bank/