In client call, SVB's new CEO focuses on keeping the firm's venture and startup relationships alive

Three days into his tenure arsenic Silicon Valley Bank's government-appointed CEO, Tim Mayopoulos has a connection for his high-powered task superior and startup clients: Bring your wealth back.

That was accordant passim Mayopoulos' responses arsenic helium fielded implicit 400 questions from acrophobic clients connected a 30-minute Zoom telephone Wednesday.

"There is nary safer spot successful the U.S. banking strategy to enactment your deposits," Mayopoulos said connected the call, which CNBC attended and was archetypal to report. He urged clients to instrumentality their funds to the slope and to promptly alert their narration teams of immoderate issues with inbound oregon outbound ligament transfers, a constituent of interest for galore firm executives who were incapable to propulsion their deposits from the slope last week.

Mayopoulos was joined by SVB operating main Phil Cox, the lone remaining enforcement from the halfway C-suite team. SVB's erstwhile CEO and CFO are nary longer employed by the bank, Mayopoulos said connected the call.

While Mayopoulos is making his pleas to existent and erstwhile clients, it's not wide however agelong helium volition enactment successful his existent occupation arsenic the slope is presently controlled by the Federal Deposit Insurance Corporation. Mayopoulos said helium doesn't cognize what SVB's "exact extremity state" would look like, and helium listed 3 possibilities: recapitalization, sale, oregon liquidation.

A recapitalization would let SVB to proceed to beryllium arsenic a standalone entity. But that anticipation depends connected different fiscal instauration oregon radical of investors stepping up.

"I admit I'm caller connected the scene," Mayopoulos said successful nonstop effect to concerns from venture superior firms. "You've been diligent with america arsenic we've gone done immoderate of those operational difficulties. All I would inquire is springiness america a accidental to triumph backmost your spot and confidence."

Mayopoulos' transportation was tailored towards the task investors that person taken to societal media successful droves to explicit daze and dismay astatine the collapse of a storied Silicon Valley institution. On the call, Mayopoulos repeatedly referred to the "innovation economy," and to a startup ecosystem successful which "Silicon Valley has played an important part."

Customer feedback volition beryllium captious successful determining the aboriginal of the bank, Mayopoulos said connected the call. Input "from clients and from the task superior and entrepreneurial community" would signifier the timetable for SVB's eventual emergence from authorities control.

"One of the things I privation to convey to you is that you person immoderate bureau successful this that you really get to vote, astatine slightest to nonstop wide signals astir what you privation the result of this process to be," the CEO said successful his prepared remarks. "If our clients take to instrumentality their deposits and support them successful different institutions, that intelligibly limits the scope of options that we person successful presumption of the eventual outcome."

SVB's longstanding narration with Silicon Valley's astir elite task firms is mutually beneficial and symbiotic.

From its founding astatine a poker array until the astir fatal slope tally past week, SVB was focused connected taking risks successful a marketplace that astir accepted banks shunned. SVB recovered a niche successful task debt, backing companies that needed currency infusions, particularly betwixt backing rounds.

In speech for aboriginal consideration, often equity oregon warrants successful a company, SVB became a mammoth subordinate successful the task indebtedness space, extending from bundle and net into beingness sciences and robotics.

In its implicit 40 of business, SVB grew on with its depositors, gathering retired a lucrative owe concern and a suite of private-banking products that allowed it to clasp and charm the founders whose fortunes the slope helped create.

From bequest enterprises similar Cisco to much modern tech companies specified arsenic DocuSign and Roku, SVB has focused connected providing financing and banking services astatine each signifier of growth.

"There are different places that bash task debt, but Silicon Valley Bank was the 1,000-pound gorilla successful the room," said Ami Kassar, CEO of the concern lending consultant Multifunding.

Exclusivity contracts, meaning an ironclad committedness that a institution would support each its wealth astatine SVB, were a cardinal facet of those backing deals. When SVB failed, it roiled startups that had traded banking flexibility for liquidity. Some fled the bank, violating their covenants to support their lights connected and their payroll checks rolling.

When asked astir imaginable exclusivity violations, Mayopoulos indicated that helium understood exigency actions taken by startups.

"Given the alteration successful circumstances and what the FDIC has done astir security coverage, we'd precise overmuch similar to enactment with our clients to person those deposits travel backmost to us," the CEO said connected the call.

Clients who instrumentality wouldn't person to interest astir immoderate fallout from breach of their covenants, Mayopoulos suggested. He didn't accidental what would hap to ex-customers who did the same.

— CNBC's Cat Clifford contributed to this report.