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Elon Musk to buy collapsed Silicon Valley Bank? Billionaire says ‘open to…’
Silicon Valley Bank collapse became America's biggest banking failure since 2008. People are looking towards Elon Musk for rescue as he recently bought Twitter to ‘ensure the sanctity of free speech’.
Twitter boss Elon Musk, known for his witty remarks on the social media platform, says in a recent post that he is open to the idea of buying the collapsed Silicon Valley Bank.
Silicon Valley Bank was closed and placed under receivership by California authorities on Friday. Following the company's unsuccessful attempt to sell shares, start-ups began withdrawing funding at the urging of venture capital firms. (ALSO READ: Silicon Valley Bank collapse: What we know so far about failed US lender)
Musk's remark comes after Min-Liang Tan, co-founder and CEO of American global gaming hardware manufacturer Razer, suggested Musk turn the failed bank into a digital bank. "I think Twitter should buy SVB and become a digital bank," he wrote on Twitter. To this, Twitter's boss replied, "I’m open to the idea."
His comment quickly gained popularity on the internet, drawing a range of responses from users. One user said, "What an opportunity. 2-3 years to get a banking charter otherwise. Just make sure you go through those toxic assets with a fine-tooth comb!" While another user started a poll to see if Elon Musk should buy SVB.Over 5,000 users have already voted, with a majority of affirmative responses.
Musk, who is also the founder of Tesla Inc. and SpaceX, recently bought Twitter in a much contested $44 billion deal to ‘ensure the sanctity of free speech’.
Silicon Valley Bank collapse
Silicon Valley Bank collapse became America's biggest banking failure since 2008 with some comparing the situation with that of Lehman Brothers' bankruptcy.
The California Department of Financial Protection and Innovation, after taking control of the bank, cited insufficient liquidity and insolvency. The Federal Deposit Insurance Corporation was designated as the receiver.
