SIVB

By Will Feuer

The Federal Deposit Insurance Corp. said it has created a "bridge bank" for depositors of the collapsed Silicon Valley Bank, and named Tim Mayopoulos as the chief executive.

A longtime banking lawyer, Mr. Mayopoulos previously served as CEO of the Federal National Mortgage Association, also known as Fannie Mae. He joined Fannie Mae in 2009, shortly after it was taken over by the federal government at the height of the financial crisis, and became CEO in 2012. He served in that role until 2018 and most recently was CEO of mortgage-software startup Blend Labs Inc.

Mr. Mayopoulos will serve as CEO of Silicon Valley Bank N.A., the bridge bank that will continue to serve Silicon Valley Bank depositors beginning Monday morning, the FDIC said.

"Depositors and borrowers will automatically become customers of Silicon Valley Bank N.A., and will have customer service and access to their funds by ATM, debit cards and writing checks in the same manner as before," the FDIC said Monday.

Silicon Valley Bank collapsed Friday in the second-biggest bank failure in U.S. history after a run on deposits doomed the tech-focused lender's plans to raise fresh capital. The FDIC took control of the bank the same day via a new entity it created called the Deposit Insurance National Bank of Santa Clara.

Write to Will Feuer at Will.Feuer@wsj.com

(END) Dow Jones Newswires

March 13, 2023 06:55 ET (10:55 GMT)

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