People all around the world are still trying to comprehend the whole Silicon Valley Bank (SVB) collapse situation but some other firms are becoming scapegoats in the process. India’s Shamrao Vithal Co-operative Bank (SVC Bank) issued a statement to its customers emphasizing that it is unrelated to SVB based in California.
SVC noted, “We request our members, customers, and other stakeholders not to pay attention to baseless rumors and mischief-mongering … insinuating similarities in brand names.”
Sachin Mane, branch manager at one of SVC’s offices stated that the bank issued the statement because of rumors about SVC’s financial condition.
Mane noted: “There were a few queries from customers but it mostly came from social media rumors… We wanted to communicate before lot of people started asking or before it became a big issue. It’s just confusion.”
Some of the customers were spreading FUD as the abbreviations SVB and SVC look similar. SVC had to come out with the statement quickly otherwise the fear-mongering would have affected them in a bad manner.
Meanwhile, the Justice Department & SEC is investigating the Silicon Valley Bank collapse which is in its early stages and may not result in charges or allegations of wrongdoing. They are also looking at stock sales made by SVB Financial executives just days before the Silicon Valley Bank folded.
Also Read: Shareholders sue Silicon Valley Bank and its Executives
