The head of Orascom Financial Holding and the founding partner of the “HOF” direct investment fund specializing in technology, Onsi Naguib Sawiris, said in an interview with Al-Arabiya, “We have succeeded in transferring all our money and accounts from small banks to JP Morgan and Merrill Lynch.” coincided with the collapse of the Silicon Valley bank.
Onsi Sawiris added that the HOF Direct Investment Fund sent messages last Thursday morning to companies in which it invests in America and around the world, with the need to transfer their deposits and money from SVB Bank to other banks.
He explained that the HOF has many accounts and funds in many banks, but Silicon Valley Bank is not one of them.
He pointed out that in the event that a major bank moves to acquire Silicon Valley Bank, it will be positive and contribute to the speedy access of depositors to their deposits, but on the contrary, the matter will be negative.
He indicated that emerging companies will currently suffer in light of the uncertainty regarding scenarios for resolving this crisis, noting that many investment funds such as the “HOF” Direct Investment Fund may have to provide temporary financing to emerging companies at the present time.
He pointed out that the “HOF” direct investment fund invests in more than 100 emerging companies in America and abroad, and that regarding 30% of those companies had exposure to the “Silicon Valley” bank, and that there were regarding 5-6 of those companies that failed to withdraw their money. From “SVB”, but it has received offers to obtain regarding 80% of the value of its deposits at the present time, and the matter is being studied with those companies.
He ruled out the occurrence of the collapse of other banks as a result of the “SVB” crisis, but the greatest danger will be to emerging companies as a result of liquidity and difficulty in obtaining financing.
California banking regulators shut down SVB Financial Group on Friday, in the biggest banking meltdown since the global financial crisis, and moved quickly to protect depositors at the startup-focused bank.
According to a statement, the regulator has assigned jurisdiction over the bank to the Federal Deposit Insurance Corporation, which will dispose of its assets.
The foundation said Silicon Valley Bank, the name the SVB group uses for its activities, was the first insured entity to fall this year. The last entity insured by the Corporation to close was Almina State Bank of Kansas on October 23, 2020.
