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Silicon Valley Bank Crisis: Amidst the bankruptcy of America’s big bank Silicon Valley Bank (SVB), the US Administration (US Government) has made a big announcement. With the aim of strengthening public trust in the country’s banking system and protecting America’s economy, the Biden administration has announced
Joe Biden tweeted on Sunday that strict action will be taken against those who are responsible for the collapse of the banks. Joe Biden also gave great relief to the account holders of both the banks and said that people’s money is safe.
Joe Biden wrote in tweeting that ‘Strict action will be taken against whoever is responsible for this mess. Along with this, monitoring and regulation of big banks will also be strengthened so that such a situation does not have to be faced again. The US President wrote in another tweet that we want to ensure the American people and the American business world that their bank deposits are safe and they can withdraw them whenever they need it.
An official statement said that this decision has been taken after receiving the recommendation of the Federal Deposit Insurance Corporation (FDIC) and the Central Bank Federal Reserve and discussions with President Joe Biden. US Treasury Secretary Janet Yellen on Sunday approved the FDIC to take steps to complete the resolution of the bank, as well as to fully protect the interests of depositors. The bank got into trouble when Venture Capital Its customers, including companies and companies supported by them, started withdrawing their deposits.
In view of the financial condition of Silicon Valley Bank, the California Department of Financial Protection and Innovation ordered its closure on Friday. Along with this, the responsibility of the financial security of the customers has been handed over to the Federal Deposit Insurance Corporation (FDIC).
Explain that the sinking of Silicon Valley Bank can shock the economies of the world including America. SVB Bank provides banking facilities mostly to technology startups and companies. Including the big brands of the industry. It is being told that when tech companies needed cash, they started withdrawing money from SVB Bank. This caused loss to SVB Bank. The bank sold bonds to recover this loss but this got the bank into more trouble.
