BLND - FDIC forms Silicon Valley bridge bank names former Fannie Mae head as CEO

2023-03-13 08:11:45 ET

• The Federal Deposit Insurance Corp. (FDIC) on Monday named former Fannie Mae CEO Tim Mayopoulos as CEO of Silicon Valley Bank, the part of SVB Financial ( NASDAQ: SIVB ) that was taken over by the banking regulator on Friday.
• Mayopoulos most recently served as president of Blend Labs ( BLND ), a company that provides lending software to banks.
• All of Silicon Valley Bank deposits — both insured and uninsured — and substantially all asset of the bank were transferred to a "bridge bank", "an action designed to protect all depositors of Silicon Valley Bank," the FDIC said .
• The FDIC stressed that all depositors will be made whole and no losses associated with the banks resolution will be borne by taxpayers, however, "shareholders and certain unsecured debt holders will not be protected."
• A bridge bank structure is designed to "bridge" the gap between the failure of a bank and the time when the FDIC can stabilized the institution and implement an orderly resolution, the regulator said.
• Earlier, Silicon Valley Bank's deposits attract hedge fund buying offers
• SA contributor James V. Baker conducts a Silicon Valley Bank autopsy.

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