After a run on deposits the bank’s assets were confiscated, making it no longer possible for the medium-sized bank to survive.
New Delhi:
The parent firm of US lender Silicon Valley Bank has filed for bankruptcy. The move comes a week after intervention by US officials. In fact, after a run on deposits the bank’s assets were confiscated, making it no longer possible for the medium-sized bank to survive.
The bankruptcy process will be separate from the sale of the assets of Silicon Valley Bank (SVB) to the Federal Deposit Insurance Corporation (FDIC). The FDIC is an independent agency that maintains stability and public confidence in the US financial system.
US President Joe Biden has given a big statement regarding the bankruptcy of America’s big bank Silicon Valley Bank (SVB). He said on Sunday that American taxpayers would not be responsible for the losses caused by the failed bank. Earlier, the US Administration made a big announcement. There will be no cap on the American taxpayer to rescue the depositors in the bankrupt SVB Bank.
President Joe Biden told Americans on Monday that the crisis that erupted after the bankruptcy of SVB Bank is under control. Amidst all this, the government is making sure that the depositors who have money in SVB Bank get it back. President Biden said that no loss will be borne by the taxpayers.
With the aim of strengthening public trust in the country’s banking system and protecting America’s economy, the Biden administration has announced that depositors of this bank will be able to access their deposits from Monday. Along with this, Joe Biden has also talked about taking action against those responsible for the banking crisis in the country.
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