Is Elon Musk buying SVB?

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Web Desk
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SpaceX owner and Tesla CEO Elon Musk speaks during a conversation with legendary game designer Todd Howard (not pictured) at the E3 gaming convention in Los Angeles, California, US. — Reuters
SpaceX owner and Tesla CEO Elon Musk speaks during a conversation with legendary game designer Todd Howard (not pictured) at the E3 gaming convention in Los Angeles, California, US. — Reuters

Chief Executive Officer (CEO) of Tesla, SpaceX, and Twitter has said that he is open to the idea of buying California-based Silicon Valley Bank (SVB) as it was taken over by the US regulators due to a financial meltdown last week.

Co-Founder and CEO of Razer Min-Liang Tan had tweeted extending a suggestion to the Twitter of buying SVB.

Min-Liang Tan said: "I think Twitter should buy SVB and become a digital bank".

Elon Musk replied to his tweet: "I'm open to the idea".

US regulators made a significant move by shutting down Silicon Valley Bank, causing a major stir in the global banking industry as concerns arose about potential contagion effects. This event marks the largest banking failure in the US since the 2008 financial crisis.

US authorities swooped in and seized the assets of SVB, a key lender to US startups since the 1980s, after a run on deposits made it no longer tenable for the medium-sized bank to stay afloat on its own.

Little known to the general public, SVB specialized in financing start-ups and had become the 16th largest US bank by assets: at the end of 2022, it had $209 billion in assets and approximately $175.4 billion in deposits.

Its demise represents not only the largest bank failure since Washington Mutual in 2008, but also the second largest failure ever for a retail bank in the United States.