The Federal Deposit Insurance Corporation named Tim Mayopoulos as the new CEO of Silicon Valley Bank NA, a bridge bank established by the regulator to take on the assets and liabilities of the former Silicon Valley Bank (SVB) of Santa Clara.
In his first message to employees Monday afternoon, Mayopoulos said that the goal of the bridge bank is to "restore and capitalize the unique franchise that is SVB and grow the business.
"In short, we will continue to operate the business of SVB for the foreseeable future to serve the needs of our clients and the communities in which we do business," Mayopoulos wrote in a Monday afternoon email obtained by The Standard.
He wrote that there are plans to operate the business of SVB for the "foreseeable future" to serve clients.
Mayopoulos most recently served as the president of San Francisco real estate technology company Blend, but his most relevant experience was being part of the new leadership team that joined Fannie Mae in the wake of the Great Financial Crisis. Mayopoulos served as Fannie Mae's CEO from 2012 to 2018.
"I am very proud of the work we did there to restore the company to profitability and to stabilize the housing finance system in a period of unprecedented change," Mayopoulos wrote in the Monday email. "I also want you to know I have a sincere appreciation for all that SVB has done to fuel innovation for the past 40 years."
After the bank collapsed, employees were offered 45 days of work at an enhanced pay rate. Silicon Valley Bank had about 8,500 employees at the end of last year.
Mayopoulos wrote that his key objectives are to deliver an "extremely high" level of service, to create as much franchise value as possible and therefore minimize financial loss to taxpayers, and to create new professional opportunities for employees.
In a note to clients posted on LinkedIn, Mayopoulos wrote that the successor bank is open and conducting business as usual within the U.S.
He wrote that all existing and new deposits are being protected by the FDIC. However, wire payments entered on March 9 or March 10 that have not already been processed have been canceled and will need to be reinitiated.
Cross-border transactions by the bank are expected to resume in the coming days.