The Federal Deposit Insurance Corporation of the USA has taken over the assets of the Silicon Valley Bank (SVB), the Associated Press, quoted by BTA, informed.
It is the biggest bank failure since the collapse of Washington Mutual at the height of the 2008 financial crisis, the agency said.
FCZD ordered SVB to be closed and took over all deposits in the bank. SVB had assets of 209 billion dinars and 175.4 billion dinars in deposits at the time of bankruptcy, the commission said in a statement. It is not yet known how many of the deposits are above the insured limit of $250,000.
SVB had large investments in the technology sector and there is little chance that the crisis will spread to the banking sector as a whole, given that the big banks have enough capital to avoid such a situation, AP notes.
United States Treasury Secretary Janet Yellen expressed her confidence in banking regulators following the failure of Silicon Valley Bank (SVB). Yellen met with representatives of the Federal Reserve, the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency to discuss the SVB situation, according to a statement from the Treasury Department.
“Secretary Yellen expresses her full confidence in banking regulators to take appropriate measures in response and noted that the banking system remains resilient, with regulators having effective tools to deal with these types of events,” the US Treasury Department said in a statement, Reuters reported. , quoted by BNR.
Meanwhile, Yellen told lawmakers at the Capitol that the Treasury Department is aware of the latest developments and is monitoring the situation, noting that it is a “matter of concern” when banks suffer losses, referring to the sharp decline in banking stocks, CNBC reports.
The White House said it has confidence and trust in US financial institutions in response to an inquiry into the bankruptcy of Silicon Valley Bank (SVB). Cecilia Rouse, who chairs the Council of Economic Advisers, expressed confidence in regulators in response to an inquiry about the institution, which was shut down today by a California banking regulator. Rouse said the US banking system is fundamentally stronger than it was during the 2008 financial crisis.
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