America’s Big Banks Amidst the bankruptcy of Silicon Valley Bank (SVB), the Biden administration has announced that the depositors of this bank will be able to withdraw their money from today, with the aim of maintaining public confidence in the country’s banking system and protecting the US economy. An official statement said that after receiving the recommendation of the Federal Deposit Insurance Corporation (FDIC) and the central bank Federal Reserve and discussions with President Joe Biden, Treasury Secretary Janet Yellen on Sunday decided to complete the resolution of the bank, as well as depositors. has authorized the FDIC to take steps to fully protect the interests of
Due to the sinking of the bank, there was increased concern among the depositors.
California-based Silicon Valley Bank, the 16th largest US bank, was shut down by the California Department of Financial Security and Innovation on Friday. It has appointed the FDIC as the bank’s resolver. The bank ran into trouble when its customers, including venture capital firms and those backed by them, started withdrawing their deposits. Depositors of the bank will be able to access their full funds from Monday, March 13, said a joint statement issued by the US Treasury Department, the Federal Reserve and the FDIC. Taxpayers will not have to bear the loss associated with the resolution of Silicon Valley Bank.
Big relief to startups around the world
In the statement, a similar systematic risk exception has been announced for Signature Bank of New York. This bank was closed on Monday. Welcoming the steps taken to protect the interests of SVB’s depositors, the US India Strategic and Partnership Forum (USISPF) has said that a swift and orderly solution is necessary to maintain America’s leadership in the global startup and innovation ecosystem. USISPF chief Mukesh Aghi said the authorities have taken steps. They know that failing to protect the value of deposits will put many startup companies in jeopardy, resulting in the loss of thousands of jobs and affecting millions of people around the world.