Twitter user @WhaleWire tweeted on March 12, 2023 that the capital market company, Morgan Creek Capital, was discovered to be a large client in Silicon Valley Bank (SVB). which recently collapsed.
In particular, the @WhaleWire tweeted that venture capitalist Anthony Pompliano, part owner of Morgan Creek Capital, has been “urging the government to bail out the bank”:
JUST IN: Crypto investment firm Morgan Creek Capital founded to be a large depositor at Silicon Valley Bank.
Bitcoin maxi Anthony Pompliano is a partial owner of the firm and has been urging the government to bail the bank out… pic.twitter.com/MLPdoQXFxs
— Mr. Whale (@WhaleWire) March 12, 2023
On March 10, the California Department of Financial Protection and Innovation (DFPI) ordered the closure of SVB and appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. As receiver, the FDIC transferred all insured deposits to the newly created Deposit Insurance National Bank of Santa Clara (DINB).
Some of Silicoin Valley Bank’s clients. Source: Twitter
Significantly, the sudden fall of the financial giant has plunged the entire financial sector creating fear and anxiety among investors and financial institutions. After the debacle, it was discovered that many banks are at risk, showing “contraction margins”.
Although the FDIC assured depositors access to their insured deposits “by Monday at the latest,” individual depositors and investors were surprised.
Ashley Tyrner, chief executive of FarmboxRx, an SVB client, wrote in an email that she was surprised to learn of the financial challenges facing the bank. She added:
By the time we started seeing articles, it was already a bank run in full swing. It seems that while the VC circle was publicly bragging about their support for SVB in an attempt to stabilize the panic, they were calling their holding companies behind closed doors to tell them to move the funds immediately.
Also, according to the revelations from @WhaleWire, Morgan Creek Capital was another big institution that has been seriously affected by the fall of Silicon Valley Bank.
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