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Twitter CEO Elon Musk Says He’s Open To Buying Silicon Valley Bank

Silicon Valley Bank (SVB), a major US bank catering to customers in the technology industry, has been shut down by regulators and its assets seized by the Federal Deposit Insurance Corporation (FDIC). The closure of SVB marks the largest US bank failure since the global financial crisis of 2008. The FDIC has established the Deposit Insurance National Bank of Santa Clara to hold insured deposits from SVB, which will continue to clear checks. The bank’s main office and all branches will reopen on March 13, and insured depositors will have full access to their deposits no later than Monday morning. However, it remains unclear how larger accounts or credit lines for companies will be affected by the closure as FDIC’s standard insurance covers up to $250,000 per depositor.

In light of the situation, Razer CEO Min-Liang Tan has suggested that Twitter should consider buying SVB and transforming it into a digital bank. This suggestion has been well-received by Twitter chief Elon Musk, who is open to the idea. The acquisition of SVB by Twitter could mark the social media platform’s entry into the fintech industry, as the company has been exploring ways to expand its business. With its large user base and strong brand, Twitter could leverage SVB’s expertise in financing start-ups and establish itself as a significant player in the digital banking sector.

SVB specialized in providing financing to start-ups and had grown to become the 16th largest US bank by assets, with $209 billion in assets and approximately $175.4 billion in deposits. The bank’s troubles began when customer withdrawals prompted the company to liquidate securities positions, whose values had plummeted due to the Federal Reserve’s interest rate hikes. The bank’s rapid collapse has caused market unrest, and the FDIC plans to liquidate its assets while insured depositors will receive an advanced dividend and potential additional dividend payments as the regulator gradually sells SVB’s assets.

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