The World’s second-richest person is the epitome of peculiarity, be it his sudden plan to buy the micro-blogging platform Twitter, firing Twitter employees over a zoom call, or naming his child X Æ A-12.
He has once again grabbed eyeballs with his tweet involving the SVB. Adding to his list of bizarre tweets, Musk expressed his interest to buy the (Silicon Valley Bank) SVB which faced a catastrophic fate after it was shut down by regulators.
What Did Elon Musk Say About SVB?
Responding to a Tweet shared by Razor CEO Min-Liang Tan, Musk conveyed his interest in taking over the reins of SVB.
Min-Liang Tan opined that the Twitter CEO should buy the defunct bank and develop it into a digital bank.
“I think Twitter should buy SVB and become a digital bank,” Tan tweeted.
In response to the Tweet, Musk replied that he is open to the idea, sending the finance pundits and Twitteratis into a frenzy.
“I’m open to the idea,” Musk replied.
But can Musk actually turn this into reality? The billionaire bought Twitter after a long saga that started with his wish to own the platform.
He started investing in the social platform in January 2022 and became the largest stockholder in the company in March 2022 with a 9.2 % share. What ensued after that was a chain of altercations and a cat-and-mouse race between Musk and Twitter.
The deal was finally closed at USD 44 billion on October 28. It had started with Musk’s cheeky wish to own Twitter and it did fructify making him at the top of Twitter’s helm of affairs.
Musk has planted the seed of SVB’s acquisition through his tweet and the bank could meet the same fate as Twitter if the Tesla CEO plays his cards right.
What the future has in store for SVB and the interest shown by Musk is all conjecture for now.
In the United States, the acquisition of a bank requires regulatory approval from the Federal Reserve and other relevant regulatory bodies. The regulatory approval process involves a thorough review of the prospective buyer's financial condition, business plans, and compliance with banking regulations.
If Elon Musk were interested in acquiring a defunct bank such as Silicon Valley Bank, he would need to submit an application to the Federal Reserve and other regulatory bodies. The application would need to include details about the proposed transaction, such as the purchase price, the source of funds, and the plans for operating the bank.
Assuming that regulatory approval was granted, the impact of Elon Musk taking control of a bank would depend on his plans for the institution. If Musk were to use the bank primarily for his own business ventures or to promote his own interests, there could be concerns about conflicts of interest and potential abuse of the banking system.
However, if Musk were to operate the bank in a responsible and transparent manner, it could potentially benefit the community by providing new financial services and investment opportunities.
For the time being, Tim Mayopoulos, the newly appointed CEO of the defunct Silicon Valley Bank (SVB), has urged depositors to come back with their money to support the bank's survival.