Elon Musk admits the possibility of buying bankrupt Silicon Valley Bank

American businessman Elon Musk said he was “open to the idea” of buying bankrupt Silicon Valley Bank (SVB). About this he wrote on your Twitter account.

“I’m open to the idea,” Musk responded to a tweet from Singaporean businessman Razer CEO Min-Liang Tan, who opined that Twitter should buy SVB and create a digital bank.

Formerly The Associated Press reportedthat California-based Silicon Valley Bank filed for bankruptcy. The agency noted that this was the second largest bankruptcy in US history after the closure of Washington Mutual in 2008.

The bank was one of the 16 largest banks in the country and specialized in working with start-ups. Among those affected by the collapse of the California bank was including the Internet TV provider Roku: according to the publication, about 26% of its funds ($487 million) were placed in SVB, and the deposits were not insured.

As part of the seizure, California banking regulators and the Federal Deposit Insurance Corporation (FDIC) transferred the bank’s assets to a newly created institution, the Santa Clara Deposit Insurance Bank. Payments of insured deposits will begin on Monday, notes AP. After that, the regulators intend to sell the rest of the bank’s assets to save the funds of other depositors.

The publication attributed SVB’s problems to its ties to tech companies, which suffered after a surge in growth during the pandemic and subsequent layoffs. In addition, the position of the financial institution was affected by the struggle of the Federal Reserve System with inflation and a series of aggressive interest rate increases, as a result of which the value of bonds falls.

Bloomberg citing regulatory documents informedthat SVB CEO Greg Becker, less than two weeks before the announcement of the losses that led to the bankruptcy of the financial institution, sold the company’s shares for $ 3.6 million.