Silicon Valley Bank's new Chief Executive Tim Mayopoulos on Tuesday urged the failed bank's top venture capital clients to move their deposits to its newly created bridge entity, people who attended a virtual meeting with him said.
"You have the ability to cast your vote in favor of this system," they quoted Mayopoulos as saying. In aHe also laid out potential outcomes for the bank, including getting recapitalized as a new independent chartered bank, finding a buyer, or winding down, which he said was "not very likely," the clients said.
Hemant Taneja, CEO of venture capital firm General Catalyst, recommended on Tuesday that its clients who had banked with SVB keep or return at least 50% of their capital to the bank. Numerous VC funds last week advised companies in their portfolios to move funds out of SVB to avoid the risk of being caught up in its potential failure.
"We believe SVB is now one of the safest and most secured banks in the country," Taneja wrote in a note he shared on Twitter. Mayopoulos was president and CEO of Fannie Mae, a government-sponsored enterprise that provides access to home mortgage credit, from 2012 to 2018. He has also served as general counsel of Bank of America, and held senior roles at Deutsche Bank, Credit Suisse First Boston, and Donaldson, Lufkin & Jenrette.
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