- Mr. Weil tweeted that Morgan Creek Capital was a large SBV depositor.
- The tweeter added that Anthony Pompliano urges the government to save the bank.
- Reports indicate that many banks and investors have been hit hard by the SBV disaster.
Digital currency analytics platform Mr. Weil tweeted on March 12, 2023, that a capital market firm, Morgan Creek Capital, was found to be a large depositor in the recently collapsed Silicon Valley Bank (SVB) giant.
Notably, Mr. Weill tweeted that venture capitalist Anthony Pompliano, part owner of Morgan Creek Capital, “urged the government to bail out the bank”:
JUST IN: Crypto investment firm Morgan Creek Capital finds it’s top depositor in Silicon Valley Bank. Maxi Anthony Pompliano is a part owner of the company and has urged the government to bail out the bank… pic.twitter.com/MLPdoQXFxs
— Mr. Whale (@WhaleWire) March 12, 2023
On March 10, the California Department of Financial Protection and Innovation (DFPI) ordered SVB to close and designated the Federal Deposit Insurance Corporation (FDIC) as the recipient. Being the recipient, the FDIC transferred all insured deposits to the newly created National Deposit Insurance Bank of Santa Clara (DINB).
Significantly, the sudden downfall of the financial giant has flooded the entire financial sector, creating fear and anxiety among investors and financial institutions. In the aftermath of the disaster, many banks are found to be in danger, which indicates “contract margins”.
Although the FDIC assured depositors of access to their insured deposits “no later than Monday,” individual depositors and investors were shocked.
Ashley Turner, CEO of FarmboxRx, an SVB client, wrote in an email that she was shocked to learn of the financial challenges the bank was facing. She added:
By the time we started seeing the articles, it was already a complete bank run. It appears that while the venture capital circle was openly bragging about its support of SVB in an effort to stabilize the panic, they were calling their portfolio companies behind closed doors and telling them to move the funds immediately.
Likewise, according to disclosures by Mr. Wells, Morgan Creek Capital was another institution seriously affected by the SBV fall.
Morgan Creek Capital demands the government release SVB; Analyst says it first appeared in Coin Edition.