SVB
Limiting the effects of Silicon Valley Bank’s collapse
The U.S. is racing to contain the consequences of the collapse of Silicon Valley Bank, the largest American bank to fail since the financial crisis in 2008. Federal regulators announced that the government would ensure that all depositors of Silicon Valley Bank would have access to all of their money starting today, and that the losses would not be borne by American taxpayers.
Amid the carnage, the Fed announced that it would set up an emergency lending program, with approval from the Treasury, to funnel funding to eligible banks and help ensure that they were able to “meet the needs of all their depositors.”
Regulators also announced that Signature Bank had been shut down by New York bank regulators to protect consumers and the financial system. It was the third bank failure within a week. Silvergate, a bank based in California that made loans to cryptocurrency companies, announced on Wednesday that it would cease operations and liquidate its assets.
Background: Silicon Valley Bank was a lender to some of the biggest names in technology, and its collapse on Friday set off fears that a one-off bank failure could turn into a full-blown financial crisis. Janet Yellen, the Treasury secretary, said the banking system was safe despite the failure of Silicon Valley Bank.
Consequences: Some of the worst casualties of Silicon Valley Bank’s collapse are start-ups developing climate change solutions.
.(source: nytimes.com)
TANIKO Madagascar 