Lawmakers in the US met with the Federal Reserve and the Federal Deposit Insurance Corporation on Friday to discuss the swift and surprising collapse of Silicon Valley Bank (SVB).
Democratic US Representative Maxine Waters reportedly discussed Hours after the SVB collapsed, two federal bank regulators as well as Treasury Department officials. Legislators from both the Democratic Party and the Republican Party were present at the meetings.
“I am appalled by the Silicon Valley Bank failure, which is the second largest bank failure in US history,” Waters reportedly said in a statement. of Silicon Valley Bank (SVB). He added:
“I commend the DFPI and the FDIC for taking decisive action today, and I have confidence in the ability of our regulators to protect America’s financial markets and consumers and investors.”
Silicon Valley Bank, one of the most popular lenders to Silicon Valley tech and growth startups, failed on March 10. fall into hands of the Federal Deposit Insurance Corporation (FDIC). On Friday, the federal agency took over control of the bank and created the Deposit Insurance National Bank of Santa Clara, which now holds deposits insured from SVB.
Several other MPs have also said that they are also monitoring the situation. In Friday’s tweet, Representative Ro Khanna Said He contacted both the White House and the Treasury Department to discuss the situation with the bank.
In addition, US Treasury Secretary Janet Yellen met with banking regulators including the FDIC on Friday to discuss the collapse of the SVB. In a statement, she said the banking system “remains resilient” and that regulators have effective tools to address these types of incidents.
Notably, the rapid collapse of Silicon Valley Bank came just two days after the collapse of crypto-friendly bank Silvergate. As informed ofSilvergate Capital Corporation, the parent company of Silvergate Bank, announced on Wednesday that it has decided to wind down its operations and liquidate its subsidiary.
Silvergate was one of the lenders most affected by the fall of FTX last November. crypto bank one run faced Following the collapse of FTX and had to sell $5.2 billion of debt securities held on its balance sheet to cover approximately $8.1 billion in user withdrawals.
Meanwhile, rising user sentiment around the banking sector has seen shares of another crypto-friendly, Signature Bank, slide. Shares of the bank were down nearly 23% on Friday and more than 37% since the start of the week.
SVB collapse dealt a blow to crypto firms
While venture capital firms and tech startups were among the worst hit by the collapse of the Silicon Valley bank, some prominent crypto companies have also disclosed risks to the bank. For one, the USDC issuer is owned by Circle. $3.3 billion of your USDC reserves at the collapsed lender.
Furthermore, bankrupt crypto lender BlockFi has $227 million Uninsured funds trapped in an account maintained by a failed lender. Crypto-focused venture capital firm Pantera may also have an undisclosed amount of exposure to the collapse of SVB.
Avalanche Foundation, which backs Avalanche Blockchain, Era Labs, the entity behind the Bored App Yacht Club NFT project, and a few other blue-chip collections, as well as Proof of Web3 company, are some of the other crypto companies that have hit hard lately. have been affected by. The collapse of Silicon Valley Bank.
