Some SVB customers have difficulty transferring money from the bank

Some Silicon Valley Bank customers are having trouble withdrawing money from their bank accounts, multiple sources tell TechCrunch.

The apparent spate of withdrawal attempts comes after SVB announced yesterday that it had lost $1.8 billion from selling US Treasuries and mortgage-backed securities it had invested in due to rising interest rates. The bank also said it would raise more capital and invest in better-performing products. Concerns persisted, causing the share price to drop more than 50% at the time of writing.

Dozens of venture capitalists are advising their portfolio companies to divest their assets from the bank, the sources say, while others are urging founders to at least diversify where they hold their capital. Meanwhile, others are warning that the panic is coming too soon, perhaps because of news earlier this week that another bank, Silvergate, is about to close. As a result, SVB is clearly experiencing deposit volatility among some of its users.

A source told TechCrunch that parts of the SVB’s website, including one of its customer service phones, are offline despite using different browsers and apps to try to move capital. Another says account access controls are now read-only, meaning users can’t make withdrawals or transfers. Others on Twitter say they often can’t log into their online banking portal.

A VC informs me that the founders of the wallet are currently at the SVB bank branches due to a website glitch and are asking for the funds to be released.

In a phone call today, CEO Greg Becker told clients that the bank has “enough liquidity” to serve its clients, “with one exception: if everyone says SVB is in trouble, that’s going to be a challenge.” The director urged VC clients to “keep calm. That’s my question. We’ve been around for 40 years, supporting them, supporting portfolio companies, supporting venture capitalists.

If you have an interesting tip or want to know what’s going on in the business world, you can contact Natasha Mascarenhas on Twitter @nmasc_ or Signal +1.925.271.0912. Anonymity requests are respected.

Source: La Neta Neta

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