Elon Musk Teases Interest In Buying Silicon Valley Bank

A new participant has joined the continued drama at Silicon Valley Bank. To get every body as much as speed, SVB, as soon as the sixteenth biggest financial institution withinside the United States, is now withinside the midst of the second-biggest financial institution disintegrate in American history. Silicon Valley Bank, which specialised in startups and different organizations supported via project capital, defaulted on its duties after a March 10 financial institution run found out it lacked enough finances to cowl even 1 / 4 of the credit score it had taken on. Silicon Valley Bank has given that been taken over with the aid of using the FDIC and is being auctioned off piecemeal to assist cowl its unpaid debts.

In a press launch dated March 12, the U.S. Department of the Treasury made it clean that taxpayers won`t foot the invoice for bailing out the financial institution, additionally declaring that depositors can count on to get get admission to to their finances beginning on Monday, March 13. The government's fast reaction to the problem isn't always surprising, as a few professionals are involved approximately the elevated uncertainty withinside the wake of SVB's failure or even capability runs on different banks. Y Combinator's Gerry Tan has defined the disintegrate as "an extinction-stage event" for American startups. One may assume that could be enough Sturm und Drang for any economic institution. Not so. Enter Elon Musk.

A existence vest or an anchor?

Elon Musk teased an obvious hobby in shopping for Silicon Valley Bank, aleven though such aspirations appear to be little greater than a tweet-stage musing at this time. The unique concept wasn't Musk's: Min-Liang Tan, CEO of gaming hardware massive Razer, pitched the notion. Musk's reaction? "I'm open to the concept."

The possibility comes at an exciting time for Musk's different ventures. The Twitter CEO has made more than one tries to construct a brand new paid tier for the microblogging platform, with various tiers of success. Adding a banking detail to Twitter ought to pass a number of the issues which have arisen given that Musk's takeover, growing a sales circulation with out critically impacting consumer self assurance withinside the platform. There's even a few buy-in from outdoor the Twitter ecosystem. Mikael Pawlo, CEO of Swedish financier Bokio and a near observer of the SVB crisis, had this to say:

Thus far, that is not anything greater than a conversation. If it develops into an real strategy, however, it can have far-attaining consequences on Twitter and worldwide finance as a whole.