Musk 'open to the idea' of buying SVB, turning it into digital bank
Elon Musk is renowned for his unexpected business ventures.
The world's second-richest man, American billionaire and Twitter owner, Elon Musk said he does not rule out the possibility of buying collapsed US Silicon Valley Bank.
Responding to a user on Twitter suggesting that Tesla's Musk should buy the failed entity and transform it into a digital bank, Musk replied, "I’m open to the idea."
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I’m open to the idea— Elon Musk (@elonmusk) March 11, 2023
On Friday, Silicon Valley Bank (SVB), America's 16th-largest bank, collapsed marking the second-largest bank failure in US history, which prompted regulators to seize its assets and halt trade on its stocks in Nasdaq.
Despite scrambling to allocate funds or find a buyer, the bank's failure to do so has led to the value of its shares crashing.
SVB, which is one of the main lenders and a partner to technology and healthcare startups that went public in 2022 - including well-known firms - has sent the early-stage tech companies and the banking sector in a spiral.
Read more: Biden discusses SVB collapse with California governor
California's Department of Financial Protection and Innovation (CDFPI) and Federal Deposit Insurance Corp (FDIC) announced on Friday the seizing of SVB's assets - worth nearly $175 billion - and relocating them to a newly established institution, the Deposit Insurance Bank of Santa Clara.
The new body will be responsible for making payments to clients with insured deposits on Monday, while the remaining assets will be auctioned to pay other depositors.