How The United States-Joe Biden govt is Handling The Crisis
The Silicon Valley Bank crisis again shows the US the mirror. Silicon Valley Bank’s deposits totalling around $175 billion are currently under the FDIC’s supervision. The assets of SVB have all been put up for sale. The bank’s UK division was recently acquired by HSBC for the pitiful price of one pound.
While announcing plans for a “thorough, comprehensive, and quick” review of the supervision of SVB, the Federal Reserve has admitted that it could have done better and that the results will be made public on May 1.
President Joseph Biden vowed a “full accounting of what transpired,” adding that he will encourage authorities and banking regulators to tighten laws on the sector. Furthermore, he said that taxpayer funds would not be used to cover the bank’s losses, ruling out the possibility of a bailout programme.
What Can Silicon Valley Bank Customers Do Now after crisis?
While large banks experience an influx of cash, the CEO of Silicon Valley Bridge Bank, which US authorities established to replace Silicon Valley Bank, has pleaded with fleeing depositors to bring their money back.
The chief executive of the institution, Tim Mayopoulos, stated in a statement, “The number one thing you can do to support the future of this institution is to help us rebuild our deposit base, both by leaving deposits with Silicon Valley Bridge Bank and transferring back deposits that left over the last few days.
The FDIC has frequently stated that it will safeguard all SVB depositors, up to and including the standard FDIC protection maximum of $250,000.
What do experts say?
A number of people have been concerned about the sudden failure of Silicon Valley Bank and Signature Bank, including banking specialists. Globally, banking stocks have been affected by the collapse.
Market declines may continue in the foreseeable future, according to experts.
“I believe that all markets will experience volatility in the near future. Given that this is the biggest American bank failure since the 2008 crisis, the anxiety is understandable. Yet, I doubt it will endure long “Ilya Volkov, a co-founder of the global financial platform YouHodler, based in Switzerland, adds.
The failure of SVB, according to Mr. Volkov, may have a cascading effect on other US banks.
