The Treasury Department is ordering the Federal Deposit Insurance Corporation (FDIC) this Sunday to pay Silicon Valley Bank customers, who will be able to access it starting Monday.
“Depositors will have access to all money starting Monday, March 13. Any loss will be borne by the payment of the Silicon Valley Bank Arpin,” according to a joint statement of the US Treasury, the FDIC and the Federal Reserve, which will not protect shareholders and certain debtors of the state.
The object is “public credit in the United States of America Federal Reserve Bank,” said the US Secretary of the Treasury, Janet Yellen.
Silicon Valley Bank (SVB), a financial institution with an important client portfolio among technology “startups”, was finally intervened by the FDIC last Friday due to doubts about its liquidity and solvency.
The federal authorities have been working on possible solutions over the weekend for customer credit, mainly by lobbying for another thing to acquire the bank. This Sunday, an auction was opened to bid for the entity next to Jos, but in the end the payment did not come from the private sector.
As of December 31, 2022, SVB had “approximately” 209,000 million dollars (196,192 million cash) in assets and “approximately” 175,400 million dollars (164,651 million cash) in deposits, according to the FDIC.
Biden is committed to holding those guilty accountable
The country’s president, Joe Biden, expressed that he is “pleased” that a “quick fix” has been taken, as it protects American workers and keeps the country’s financial system safe.
“The American people and American businesses can trust that their bank deposits will be there when they need them,” Biden said, according to a White House statement.
Likewise, the president, who announced on Monday that he would explain “how to keep the banking system” to protect the economic recovery, showed that he was “firmly committed” to “holding those responsible for this mess fully accountable.”
For this reason, he indicated that he would work to strengthen the care and regulation of the largest banks in order to avoid this in the future.
“Peaceful actions of the nerves”;
The president of California, Gavin Newsom, issued a statement in which he pointed out that the actions of the US government “have calmed nerves and had a profoundly positive impact on California.”
“The Biden administration will act quickly and fully to protect the American economy and strengthen public confidence in our banking system,” he added.
Thus, he has thought that, as “California is a pillar of the American economy, the federal leaders” have done the right thing, we want the economy of innovation to grow and progress.