BANK FACES ‘PANIC’
SVB pleads for calm
SILICON Valley Bank CEO Greg Becker tried to calm tech investors and entrepreneurs, whom he conceded are “starting to panic,” as they fear a potential run on the bank, On The Money has learned.
The boss of the 40-yearold financial firm — which saw its stock plummet 60% in afternoon trading on Thursday — gathered key venture capitalists and founders on a Thursday Zoom call to promise the bank is in a strong position with lots of liquidity.
“My ask is to stay calm because that’s what is important,” Becker told listeners. “We have been longterm supporters of you — the last thing we need you to do is panic.”
On Wednesday, Silicon Valley Bank said it would raise $2.25 billion following a $1.8 billion after-tax loss in various bets on securities.
“We knew that would create a lot of noise, which it has,” Becker conceded. “But what we wanted to do was reposition . . . a low-yield asset to a high-yield asset.”
Becker chose not to take questions on the call, noting that SVB is in the middle of a capital raise and thus in a quiet period. “I know this is a strange call,” Becker conceded. “But everyone talks . . . That creates an issue, so I wanted to make sure we got in front of you.”
Still, tech founders, who spoke on the condition of anonymity, told The Post they are actively pulling their money out of SVB.
The firm, which works with about half of venturebacked companies and advertises itself as the “venture capital industry’s leading bank,” is an institution in Silicon Valley.
But that doesn’t mean VCs or founders necessarily have a sense of loyalty.
A spokesperson for SVB did not respond to request for comment.
FTC noms
Two Republicans who are front-runners to fill vacancies at the Federal Trade Commission lack experience when it comes to antitrust — the key issue the powerful panel has been tackling under controversial Chair Lina Khan, On The Money has learned.
Andrew Ferguson, solicitor general of Virginia and previously chief counsel to Senate Minority Leader Mitch McConnell (R-Ky.), is expected to be a nominee, sources told The Post. Another likely name is Melissa Holyoak, solicitor general of Utah and a longtime litigator.
While they are both respected legal eagles, some DC insiders fret that McConnell, who is responsible for submitting nominees to the White House, has shied away from candidates who can go head-tohead with Khan on antitrust.
McConnell’s office and the FTC did not respond to requests for comment.