Amid the entire Silicon Valley Bank debacle, Razor CEO Min-Liang Tan said that Twitter should buy SVB and become a digital bank. Responding to his Tweet, Elon Musk, CEO of Twitter said, “I’m open to the idea".

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US-based Silicon Valley Bank (SVB) was shut down by regulators and its assets have been seized, the Federal Deposit Insurance Corporation (FDIC) said on Friday. The sudden collapse shook up global markets and stranded billions of dollars belonging to companies and investors.

Also Read: Silicon Valley Bank stock crashes: Twitter calls it a 'Lehman Moment for the start-up world'

The announcement was the result of the sudden shutdown of Silvergate Capital Corp and the unmindful fundraising of SVB, which had created a bloodbath in startup industry stocks in the US.

The ramifications of the crisis have spread to Sweden — SVB's plunge wiped out more than half of the value of the holdings that Alecta — Sweden's largest pension fund — had in the bank. According to a Bloomberg report, Alecta, the fourth largest shareholder in SVB, lost 54 percent in terms of value of its stake after the Californian bank lost 60 percent in stock value on Thursday.

The Santa Clara, California-based SVB announced a public offering, liquidated nearly all of the securities in its portfolio that were on the market, and revised its annual forecast to reflect a more significant fall in net interest income.

Also Read: What happened at the Silicon Valley Bank and why does it matter?

SVB Chief Executive Officer Greg Becker, in a letter to shareholders, said, “We are taking these actions because we expect continued higher interest rates, pressured public and private markets, and elevated cash-burn levels from our clients as they invest in their businesses."

First Published:Mar 11, 2023 11:12 AM IST