Elon Musk Says He is ‘Open to the Idea’ of Buying Failed US Bank, SVB
- Elon Musk is mulling the idea of acquiring the failed SBV bank to expand Twitter’s offerings
- Musk responded to a Twitter user’s suggestion that the microblogging site acquires the bank
- Silicon Valley Bank collapsed on Friday after it told investors it was looking for funds to balance its accounts
PAY ATTENTION: See you at Legit.ng Media Literacy Webinar! Register for free now!
Tesla CEO Elon Musk has said he is open to buying Silicon Valley Bank (SVB), which collapsed on Friday, March 10, 2023.
Musk was responding to a question by a Twitter user who said that Twitter should acquire the bank and become a digital bank.
Source: Getty Images
Why SBV failed
In response, Musk stated he was open to the idea but failed to provide further details.
PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ find the “Recommended for you” block on the home page and enjoy!
Musk’s response has amassed close to one million reactions and has been viewed 7.2 million times as of March 11, 2023.
SVB, a tech-focused bank, shut down after US regulators moved in to secure depositors’ funds due to a massive rush to withdraw money.
Reports said depositors pulled about $42 billion in 48 hours after the bank announced it was trying to raise funds to balance its accounts and stay afloat.
The bank’s announcement cratered its stocks.
SVB’s collapse is the second-largest failure in US history after the collapse of Washington Mutuals in 2008.
Authorities move to secure depositors' bank
US regulator, the Federal Deposit Insurance Corporation (FDIC), insures bank deposits of up to $250,000 and has guaranteed deposits of SVB.
FDIC said it would make payments to depositors of the failed bank latest Monday, March 13, 2023.
On Saturday, March 11, 2023, UK regulators, the Bank of England, took over the UK subsidiary of SVB.
Suppose Elon Musk pulls through with the idea that many consider a joke. In that case, Twitter could expand its product offerings into the financial industry, offering banking services to its users.
Global financial crisis looms as US second-largest bank crumbles after customers withdraw N19trn in 48hrs
Legit.ng reported that Silicon Valley Bank, America’s second-largest bank, collapsed on Friday, February 10, 2023, 48 hours after the bank said it was looking to raise more funds.
Regulators closed the bank, regarded as a tech lender, and placed it under the control of the US Federal Reserve Insurance Corporation, acting as a receiver.
The development means that the Federal Reserve Insurance Corporation will liquidate the bank’s assets to pay back customers, including depositors and creditors.
Source: Legit.ng
