Now you can withdraw money from Silicon Valley Bank, big relief for startups
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Washington: Depositors of America’s largest Silicon Valley Bank (SVB), which has been declared bankrupt after the order of California regulators, will be able to withdraw their money from Monday i.e. today. This announcement has been made by the Joe Biden administration to keep public trust in the banking system strong and to keep the American economy going. The Joe Biden administration has said that depositors of Silicon Valley Bank will be able to access their money from Monday.
Resolver of FDI Bank appointed
An official statement issued by the US President Joe Biden administration 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 has approved the FDIC to take steps to fully protect the interests of depositors while simultaneously completing the resolution of the bank. California-based Silicon Valley Bank, the 16th largest bank in the US, was closed on Friday by the California Department of Financial Security and Innovation. It has appointed the FDIC as the bank’s conciliator.
Taxpayers will not have to pay for the loss
The bank ran into trouble when its customers, including venture capital firms and their subsidiaries, started withdrawing their deposits. In a joint statement issued by the US Ministry of Finance, Federal Reserve and FDIC, it was said that the depositors of the bank will be able to use their entire amount from Monday, March 13. Taxpayers will not have to bear the loss associated with the resolution of Silicon Valley Bank.
New York’s Signature Bank also closed
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 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.
Many startup companies in trouble
According to a report in news agency Bhasha, USISPF chief Mukesh Aghi said that the authorities have taken steps. They know that failure to protect the value of deposits will land many startup companies in jeopardy. As a result, thousands of jobs will be at risk and millions of people around the world will be affected by it.
HSBC to buy UK subsidiary of Silicon Valley Bank
On the other hand, there is also news that Britain’s Ministry of Finance and Bank of England have helped HSBC sell America’s Silicon Valley Bank UK, which has been declared bankrupt, and have also ensured the security of deposits worth $8.1 billion. UK authorities were scrambling to find a buyer for its UK subsidiary after the failure of California’s Silicon Valley Bank (SVB). Britain’s Finance Minister Jeremy Hunt tweeted that this morning the government and the Bank of England facilitated the private sale of Silicon Valley Bank UK to HSBC. The deposit will be protected, no co-operation will be taken from the taxpayers. HSBC said it will acquire Silicon Valley Bank UK.
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