The Greek-born Tim Mayopoulos has extensive experience in managing banking crises
“The past few days have been extremely difficult, both for the bank's customers and employees,” said Mr. Mayopoulos.
FROM THE PRINT EDITION.And yet, Silicon Valley Bank finally remains open and works normally “as if nothing is happening”, as explained to the bank's customers by Tim Mayopoulos, the Greek-born new CEO of the bank, which with its bankruptcy in recent days has caused storm in the markets around the world. Tim Mayopoulos has assumed duties since Monday. It was preceded by the dismissal of SVB's previous management, including former head Greg Becker, whom the bank's staff accuse of making “absolutely stupid” choices, according to a CNN report.
Announcing that he is assuming his duties, Tim Magiopoulos explained in his email that he recognizes that “the last few days have been extremely difficult, both for the customers and for the employees of the bank”, adding that he will act with “experience” but also “modesty”. Born in March 1959 to Harry Mayopoulos and Eleonora Mayopoulos, Timothy Mayopoulos graduated from Cornell University in 1980 and went on to New York University School of Law, where he received his J.D. in 1984. As CNBC points out , is considered among the most experienced banking executives from both financial institution crises and technology crises. During his career he has worked as an executive at Deutsche Bank, Credit Suisse, First Boston, Lufkin & Jenrette while serving as general counsel of Bank of America.
“The last few days have been extremely difficult, both for customers and for the bank's employees”
His experience in banking crises is evidenced by his tenure at mortgage banking giant Fannie Mae, which was reeling amid the aftershocks of the 2008 global financial crisis. He rose to the positions of chairman and CEO and managed to return the company to profitability. . In 2018 he left Fannie Mae and since 2019 has been a member of the technology company Blend, which produces software for banks, mortgage brokers and other companies in the financial sector and enables them to manage multi-billion dollar mortgages and banking transactions in general on a daily basis.
In the message he sent by mail to the bank's customers, he emphasized that he was taking over in order for the bank to regain the trust of its customers, but also to support its customers and their companies. It should be noted that Silicon Valley Bank mainly financed start-up technology companies and to a certain extent its problems were also related to the crisis facing the high-tech sector. Mail, speculating that it will bring some calm to the market and reassure investors. As for SVB's former chief executive, Greg Becker, he is accused of not acting quickly enough to ensure the bank's rescue. In fact, according to Jeff Sonnenfeld, CEO of CELI, the announcement of the capital increase of $2.25 billion last Wednesday was unnecessary.
Speaking to CNN, Sonnenfeld emphasized that the bank had the required capital adequacy and in fact its funds exceeded the requirements set by the regulations. In addition, he characterized as inappropriate the decision to announce the loss, amounting to 1.8 billion dollars, which the bank announced.
