What might happen after a Silicon Valley bank collapse?
Photo: Reproduction
account holders of Silicon Valley Bankas well as investors and bankers around the world are waiting for an announcement from US regulators. USA about what happens after the bank fails the largest in the country since the 2008 crisis.
on friday Oh FDIC (Federal Deposit Insurance Corp.) advised that all accounts and assets insured by the company will be available by this Monday (13) morning.
Customers are covered up to 250 thousand dollars will be able to access money in their accounts. But amounts above this value that represent 85% of SVB accountswere without warranty and It’s not yet clear when those customers will have access to those funds.
The role of SVB as a the main startup funder and other venture capital firms mean that many companies may struggle to meet them payroll and other liabilities if the money is not recovered soon.
As we have shown, the government Joe Biden d:should announce more events this Sunday bank deposit guarantees. According to a source told Reuters, the aim is to avoid wider consequences after the collapse.
Former US Treasury Secretary Janet Yellenruled out a government bailout of SVB, as it did during the 2008 crisis, but said regulators were exploring other options.
“This is the FDIC’s decision because it decides what is the best way to resolve the company’s problems.”he said. Yellen also stated that she considers the American banking system safer and sounder than before Before the 2008 crisis.
Besides trying increase deposit guaranteesto: US authorities seek to find a buyer for the bank.
Historically, this type of acquisition has been done in Armenia weekends. After the bank opens on Monday, more account holders will be able to withdraw their money, making sales more difficult.
“Startup Bank” was 16th The largest bank in the United Stateswhich makes the list of buyers limited.
If there is no buyer for the SVB, the FDIC will sell the bank’s assets collect money to be used to reimburse uninsured account holders.
According to Bloomberg, in a report published on Saturday, between 30% and 50% of uninsured deposits can be returned as early as Monday.
Investors warn that failure to announce a new SVB deposit recovery program by regulatory authorities may result in: cascading problems in other small and medium banksin addition to reaching the financial markets.
bankruptcy of Silicon Valley Bank Last week rattled the market and sent the S&P 500 regional bank index lower almost 14% between Thursday and Friday. SVB’s publicly traded shares fell more than 60% on Thursday before trading was halted on Friday.
More news
