The Treasury Department ordered the Federal Deposit Insurance Corporation (FDIC) on Sunday to guarantee the funds of Silicon Valley Bank customers, which they will be able to access starting Monday. “Depositors will have access to all money as of Monday, March 13. Any loss associated with the resolution of Silicon Valley Bank will be borne by the taxpayer,” according to a joint statement by the US Treasury, the FDIC and the Federal Reserve, which will keep state shareholders and certain unsecured borrowers “.
The objective is to “maintain public confidence in the banking system of the United States,” said US Treasury Secretary 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 consistently defend the banking system” to protect economic recovery, was “firmly committed” to “holding those responsible for this mess fully accountable.”
For this reason, he indicated that he is working to strengthen the management and regulation of the largest banks in order to avoid this in the future.
“Peaceful actions of the nerves”;
California governor Gavin Newsom said in a statement that the US government’s actions “have caused a deep and positive impact on California.”
“The Biden administration will act quickly and firmly to protect the American economy and strengthen public confidence in our banking system,” he added.
So he thought, because “California is a pillar of the American economy, the federal leaders” did the right thing, wanting the innovation economy to grow and be able to move forward.