of Silicon Valley Bank The new owners face the dual task of improving the business while restoring the bank’s reputation.
in the Financial Times interview Published on Sunday (April 23rd), Peter Bristow — President of North Carolina-based First Citizens — He controlled deposit outflows and helped bankers jump ship while trying to rebuild trust in financial institutions at the center of the global banking crisis. It said it was working to keep it out of the competition.
“We are in the early stages of stabilizing them and getting them back in business,” Bristow said. Acquired Silicon Valley (SVB) was taken over by a federal regulator last month.
First Citizens retains the SVB name and operates as a unit of its own bank, but struggles to polish SVB’s tarnished brand.
“[SVB] was the #1 bank in technology and life sciences for over 30 years, and suddenly it’s gone. So we’ve spent a lot of time making sure people trust that we belong to the bank. I was running,” said Bristow.
The report notes that some Silicon Valley startups and investors are skeptical of First Citizen, which has limited venture capital experience.
“A lot of what SVB did — events, mortgages, venture loans — doesn’t make sense economically unless you look at the full lifecycle of the relationship,” said one multi-billion dollar venture head. told the FT. “We knew everyone in the ecosystem, so they were able to do it.”
Bristow suggested his bank could reconsider lending to SVB’s venture capitalists and the companies they financed.
“As much as possible [venture lending] was the core tenet of what the SVB did, but the question was, did it create a lump of deposits? ” He said.
and interview Last week with Karen Webster of PYMNTS Amyas Geleti,partner QED investor, Venture Debt said SVB will be a smaller industry under new owners. Also, major companies in this sector will be more cautious about the companies they lend to.
But he emphasized making great companies that need great products, great growth, and new ideas, rather than “did you get capital from me or a lender or did you raise your own?” bottom.
Meanwhile, PYMNTS also interviewed a dozen financial chiefs in the wake of the SVB collapse. Need for best practices.
Among them Carlos Sanchez ArtiCFO of a payment solution provider mango piehe said the March banking crisis “examined the discipline CFOs need to have when it comes to cash management and finance” and served as a “wake-up call” for many companies and CFOs to get back to basics.
Sanchez-Arruti said the new macro environment has made it imperative for finance leaders to move from a “growth-only focus” to one that emphasizes long-term visibility into working capital and profitability. I added that there are
