The world saw a failing bank. Biden aides saw a great unraveling. New fears began to surface about a potential run on Silicon Valley Bank, threatening widespread devastation not just for California, but perhaps the U.S. economy writ large.
It seemed like a simple question: Did the treasury secretary have any concerns about the economic risks posed by Silicon Valley Bank?
Ultimately, the Biden administration decided to complete a major intervention with extraordinary speed, acting to preserve deposits at Silicon Valley Bank while safeguarding the finances of other firms on the precipice of ruin. Their efforts showed the extent to which the president was willing to risk being accused of providing emergency help to bail out the financial sector — a charge the White House adamantly denies — in a bid to keep the system stable and stave off a worsening crisis.
Instead, the administration managed to calm markets, after a day of turbulence that cut deeply into banks’ stocks Monday. And it prevented the sort of panic that might have resulted in countless Americans withdrawing money from their banks, which could have created damaging instability in the financial system.
Soon, federal policymakers and SVB’s customers alike were starting to worry about whether the bank would make it through the weekend. Around 9 a.m. Eastern on Thursday, Union Square Ventures emailed its portfolio companies to warn them about the situation, according to a person who received the email. USV is one of the most influential early-stage venture capital firms and was an early investor in Twitter, Etsy and Duolingo.
Many of the bank’s customers, meanwhile, were not the usual fare — they were investors, companies and other large institutions. It had more than $170 billion in deposits by the end of December, but 90 percent of them exceeded $250,000, the amount up to which the federal government insures in the event of a collapse.By Saturday, Yellen, Federal Reserve Chair Jerome H. Powell, and Federal Deposit Insurance Corp. Chairman Martin J.
More than 600 tech executives, engineers and investors piled onto a hastily arranged, late Friday call with Rep. Ro Khanna , whose Bay-area district includes the headquarters for Silicon Valley Bank. Publicly, Khanna soon emerged as a forceful voice calling for the Biden administration to rescueThe lobbying blitz reflected a broader sea change in the normally libertarian tech industry — one that typically tries to ward off federal intervention.
California members told administration officials stories of local businesses that stood to suffer in the event of a financial catastrophe, even beyond tech. In one example, they pointed to a payroll processor that parked its money at SVB and served nearly 1 million workers — people who could miss paychecks if large depositors weren’t rescued. Khanna, meanwhile, pointed to a local food bank that had relied on the now-failed firm.The administration still faced obstacles to sweeping action.
Indonesia Berita Terbaru, Indonesia Berita utama
Similar News:Anda juga dapat membaca berita serupa dengan ini yang kami kumpulkan dari sumber berita lain.
Mexican president says his country safer than United StatesMexico’s president claimed Monday that his country is safer than the United States, a week after two U.S. citizens were killed and two kidnapped and later rescued in the border city of Matamoros. President Andrés Manuel López Obrador said U.S. travel warnings and reports of violence in Mexico were the result of a conspiracy by conservative politicians and U.S. media outlets to smear his administration. Despite López Obrador’s assurances that Mexico was safe for travel, the FBI confirmed last week that three other women from the small Texas town of Peñitas have been missing in Mexico since late February.
Baca lebih lajut »
Mexican president says his country safer than United StatesMexico’s president claimed Monday that his country is safer than the United States, a week after two U.S. citizens were killed and two kidnapped and later rescued in the border city of Matamoros.
Baca lebih lajut »
Gold Price Forecast: XAU/USD retreats on sluggish Treasury yields ahead of United States inflationGold price (XAU/USD) fades the previous day’s upside momentum, the strongest in four months, as it makes rounds to the five-week high surrounding $1,9
Baca lebih lajut »
Mexican president says his country safer than United StatesMexican President Andrés Manuel López Obrador says U.S. travel warnings and reports of violence in his country are the result of a conspiracy by politicians and American media outlets to smear his administration.
Baca lebih lajut »
Mexican president says his country safer than United StatesMexico's president has claimed that his country is safer than the United States, a week after two U.S. citizens were killed and two kidnapped in the border city of Matamoros. mexico us kprc2 click2houston
Baca lebih lajut »
Mexican president says his country safer than United StatesMEXICO CITY (AP) — Mexico’s president claimed Monday that his country is safer than the United States, a week after two U.S. citizens were killed and two kidnapped and later rescued in the border city of Matamoros.
Baca lebih lajut »