Silicon Valley Bank depositors will be able to withdraw their money from Monday: Biden administration
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Washington: Amidst the bankruptcy of America’s big bank Silicon Valley Bank (SVB), with the aim of maintaining public confidence in the country’s banking system and protecting America’s economy, the Biden administration has announced that the depositors of this bank will withdraw their money from Monday. Will be able to use the money.
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
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, began withdrawing their deposits.
“Bank depositors will be able to access their full funds from Monday, March 13,” said a joint statement issued by the US Treasury, the Federal Reserve and the FDIC. Taxpayers will not bear the burden of losses associated with the resolution of Silicon Valley Bank.” 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 needed 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 the impact of millions of people around the world.”
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