US President Joe Biden said on Sunday that he was determined that those responsible for the situation that arose after the bankruptcy of the SVB bank “be held to account”. He added that federal agencies and banking regulators are “urgently addressing” the issues that have arisen and that taxpayers’ money is not at risk.
“I am determined to those responsible for this mess have been held to full account and to continue efforts to strengthen the supervision and regulation of larger banks so that we find ourselves in this situation againBiden said in a published statement.
He added that “Americans and American companies can trust that their bank deposits will be there when they need them.”
Biden said the Treasury secretary and other federal agencies were “working diligently” with banking regulators to resolve the issues that arose from the failures of Silicon Valley Bank and Siganture Bank, and that steps were being taken to ensure that taxpayers’ money was not at risk.
He said he would present on Monday working to maintain “a stable banking system and protect our historic economic recovery.”
In a joint statement, Finance Minister Janet Yellen, Federal Reserve Chairman Jerome Powell and FDIC Chairman Martin Gruenberg announced that “depositors will have access to all of their money starting Monday, March 13. No losses associated with the liquidation of Silicon Valley Bank will be incurred by the taxpayer“.
Sunday’s announcement is the government’s response to Friday’s collapse of the 16th largest bank in the US, which plays a significant role in servicing Silicon Valley companies and funds.
As announced, the bank’s shareholders will not recover their contributions its management was fired. Losses arising from the liquidation of the bank will be covered by the federal guarantee fund. Although according to the law, only deposits up to 250,000 are guaranteed. dollars, the administration decided to provide customers with access to all their SVB accounts, citing the desire to eliminate risk to the banking system.
“This step will ensure that the U.S. banking system continues to fulfill its critical roles of protecting deposits and providing access to credit for households and businesses in a way that promotes strong and sustainable economic growth,” the statement said.
At the same time, similar steps were applied to the closed on Sunday Signature Bank of New York.
“Silicon Valley” means “Silicon Valley”. Silicon Valley Bank (SVB) is – loosely translated – the Bank of the Silicon Valley.
SVB came under state scrutiny on Friday after it was unable to pay out customers massively withdrawing their funds. The collapse of the 16th largest bank in the US is the largest such case since 2008. and raised concerns about wider negative effects on other banks and on Silicon Valley companies for which it played a key role.
Earlier, US Finance Minister Janet Yellen said the administration would not come to the aid of Silicon Valley Bank owners and investors, as it did during the 2008 financial crisis, but would focus on ensuring customers with SVB deposits did not lose their money. .
Bank deposits are insured by the state up to PLN 250,000. dollars, but administration representatives have announced that they will also try to protect non-guaranteed accounts. Among the options being considered is a takeover of SVB by another bank.
We are closely monitoring developments and potential implications for financial stability and we are absolutely confident that policy makers in the United States are taking appropriate steps to address this situation spokesman for the International Monetary Fund told Reuters.
India’s Minister of State for Technology expressed concern about the collapse of SVB. Start-ups are an important part of the new Indian economy. This week I will meet with Indian start-ups to find out how the government can help during this crisis Rajeev Chandrasekhar, India’s Minister of State for IT, tweeted.
India has one of the largest start-up markets in the world, with many valued at multi-billion dollars in recent years and gaining the support of foreign investors who have boldly bet on digital and other tech companies.
I’ve spoken to some of the founders and it’s very bad. Especially for Indian founders who have their companies in the USA and SVB is their bank. Uncertainty kills them Ashish Dave, CEO of Mirae Asset Venture Investments (India), wrote in a tweet.
Indian mobile gaming company Nazara Technologies Ltd. announced that two of its subsidiaries, Kiddopia Inc and Mediawrkz Inc., have cash balances of $7.75 million at Silicon Valley Bank.
