The Treasury Department is ordering the Federal Deposit Insurance Corporation (FDIC) this Sunday to pay Silicon Valley Bank customers, which they will be able to access starting Monday.
Depositors will have access to all funds starting 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 indicate that shareholders and certain debtors are unsecured.”
It is the object of “public debt in the United States of America Federal Reserve Bank,” declared the Secretary of the US 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, in the investigation of those responsible
The president of the country, Joe Biden, expressed that he is “agreed” that the “fixed and quick” cost, while protecting American workers and keeping the financial system of the country 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.
The nervous system is silent
The president of California, Gavin Newsom, issued a statement in which he showed 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.
HSBC buys Silicon Valley Bank UK for £1
HSBC Holdings announced this Monday that its subsidiary in the United Kingdom, HSBC UK Bank, will acquire Silicon Valley Bank UK Limited (SVB UK) for 1 pound sterling (1.13 euros).
As of March 10, 2023, SVB UK had loans of about 5,500 million pounds (6,218 million pounds) and deposits of about 6,700 million pounds (7,575 million pounds), while last year it reported a profit before taxes of 88 million pounds. 99.5 million in cash).
The assets and liabilities of SVB’s UK parent company are excluded from the transaction, which will be completed immediately and financed from existing resources, HSBC said.
“This acquisition makes strategic sense for our UK business,” HSBC CEO Noel Quinn said in a statement, highlighting the protection of British depository subsidiary SVB.
“SVB’s UK customers can continue to bank as usual, knowing their deposits are safe and sound, backed by HSBC’s safety and security,” he added.
