Billionaire investor Peter Thiel says he had tens of tens of thousands and thousands of bucks in Silicon Valley Bank whilst the lender changed into seized with the aid of using regulators ultimate week, in spite of his very own project fund caution that the financial institution might be in trouble.
The PayPal co-founder and Republican mega donor has been accused with the aid of using critics of contributing to the run at the financial institution that caused SVB`s demise, amid reviews that his firm, Founders Fund, had pulled all of its budget from the financial institution and warned its portfolio groups beforehand of the collapse.
"I had $50mn of my very own cash caught in SBV," Thiel instructed the Financial Times this week, in step with a file posted Thursday.
"Thiel stated he did now no longer draw down from his account due to the fact he believed the financial institution might now no longer fail," the opening reported. "His account changed into frozen whilst the Federal Deposit Insurance Corporation stepped in and took over SVB on Friday."
SVB, which catered closely to the project capital network and changed into the nation's seventeenth biggest financial institution, changed into close down with the aid of using California regulators and brought over with the aid of using the FDIC on March 10 as depositors scrambled to tug their cash out.
Earlier withinside the week, SVB had disclosed mounting losses, which sparked fears that the financial institution should fold amid a liquidity crisis.
The massive majority of the financial institution's deposits had been above the $250,000 threshold insured with the aid of using the FDIC, so panicked clients rushed to tug their budget over fears that they might be lost.
The FDIC introduced a plan Sunday assuring uninsured depositors that their budget had been secure, and it reopened the organization on Monday. But more than one smaller banks had been additionally seized withinside the aftermath, main to fears of contagion.
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