Elon Musk is ‘open to the idea’ of buying a Silicon Valley bank- Elon Musk may buy SIVB to become a digital bank.
- SIVB was placed under the control of the US Federal Deposit Insurance Corporation (FDIC).
- The FDIC liquidates the bank’s assets and finds out how to refund customers.
Unusual Whales, a popular cryptocurrency market alert provider, tweeted that Twitter CEO Elon Musk said he was “open to the idea” of buying beleaguered Silicon Valley Bank (SIVB). Musk said he would buy SIVB and become a digital bank.
BREAKING: Elon Musk just said he’s “open to the idea” of buying Silicon Valley Bank and going digital.
– Unusual Whales (@unusual_whales) March 11, 2023
On February 10, 2023, California regulators shut down the Silicon Valley bank and placed it under the control of the US Federal Deposit Insurance Corporation (FDIC). The current development puts the FDIC in charge of liquidating the bank’s assets and figuring out how to refund customers.
The move caps a busy week for the tech-inclined bank, whose financial struggles have led to wild speculation among stakeholders. The difficulties of the SIVB have prompted some startups to consider withdrawing their funds and raised fears of a ripple effect across the financial sector.
Emerging theories point to a deliberate orchestration of the SIVB collapse. Some stakeholders suggest proper investigation of the problem which can reveal the cause of bank failure.
Caitlin Long, founder of Custodia Bank, tweeted that he believes some people in Washington are glad SIVB is down. According to him, they wanted to bring in some of the most innovative banks and financial technology. Long’s theory gained support from another Twitter user, Nic Carter, who suggested an investigation into the members of Congress who encouraged the bank startup because of their vendetta against crypto and technology.
The collapse of SIVB has increased the level of uncertainty among the startup community. Many founders worry about how they will get their money and what might happen to their business. Ashley Turner, founder of health food delivery company Farmbox Rx, was reportedly upset by the development, wondering what would happen to his company’s future.
Elon Musk’s post “Open to the Idea” of buying Silicon Valley Bank first appeared in Coin Edition.
