- Mr. Whale tweeted that Morgan Creek Capital was a large depositor at SBV.
- The tweeter added that Anthony Pompliano has been urging the government to bail the bank out.
- Reports suggest that many banks and investors are deeply affected by the debacle of SBV.
A crypto analytical platform Mr. Whale tweeted on March 12, 2023, that the capital market company, Morgan Creek Capital, is found to be a large depositor at the commercial banking giant Silicon Valley Bank (SVB) that recently collapsed.
Notably, Mr. Whale tweeted that the venture capitalist Anthony Pompliano, the partial owner of Morgan Creek Capital, has been “urging the government to bail the bank out”:
JUST IN: Crypto investment firm Morgan Creek Capital found 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 SVB to shut down and appointed the Federal Deposit Insurance Corporation (FDIC) as a receiver. Being the receiver, the FDIC transferred all the insured deposits to the newly created Deposit Insurance National Bank of Santa Clara (DINB).
Significantly, the sudden fall of the financial giant has sunken the whole financial sector creating fear and anxiety among investors and financial institutions. Subsequent to the debacle, it was found out that many banks are at risk, showing “contracting margins”.
Though the FDIC assured the depositors of access to their insured deposits “no later than Monday”, the depositors and individual investors were shocked.
Ashley Tyrner, the CEO of FarmboxRx, an SVB client wrote in an email that she was shocked to know about the financial challenges the bank has been facing. She added:
By the time we began seeing articles it was already a full-swing bank run. It seems that while the venture capital circle was publicly boasting their support for SVB in an attempt to stabilize the panic, they were calling their portfolio companies behind closed doors telling them to move funds immediately.
Similarly, as per the revelations by Mr. Whales, Morgan Creek Capital was another institution that has been seriously affected by the fall of SBV.
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