The crash of the Silicon Valley bank is the most significant incident post the 2008 crisis. Companies thumping to the ground that carry billions of dollars of money and unmeasurable hopes aren't acceptable for a country and its economy. However, the crash of the Silicon Valley bank was more of an inevitable circumstance, one that people expected beforehand! Biden Administration Intervenes
With a rush to get their deposits back, the shutting down of the Silicon Valley bank by the California Department of Financial Protection and Innovation has led to a hike in tension among the depositors. But the Biden-led government has intervened at the essential time and ensured that all the depositors of the Silicon Valley bank would have their money back, starting from Monday. With the Federal Deposit Insurance Corporation (FDIC) coming into the game, it must unroll a new sense of relief among the depositors of the Silicon Valley bank. FDIC, a federal agency, covers up to $250,000 per depositor only for the member firms. Created in the year 1933 during the Great Depression, FDIC was a measure to maintain the confidence of the public in the banking sector and promote "sound banking practices." It was also the last resort for depositors in case of bank failures, as happened with the Silicon Valley bank. A joint statement was issued by the Department of the Treasury, Federal Reserve, and FDIC on the Silicon Valley bank matter. It said, "The depositors will have access to all their money starting Monday, that is, March 13. No losses associated with the resolution of the Silicon Valley Bank (SVB) will be borne by the taxpayer."It also stated that a "similar structure" will be implemented for the Signature bank, another organization that collapsed in New York. However, chances are that shareholders and a few "unsecured debt holders" from the Silicon Valley bank won't be protected under the rules laid down by the acting departments. Biden Administration Intervenes
Depositors must refrain from panic withdrawals to cease the crashing of the banks, one after another. With additional funds being released by the Government for other banks, everyone around the world is hoping that the collapse of the Silicon Valley bank will be the last of a kind. For more updates keep visiting our website www.topstoriesworld.com where we provide unbiased, true, and top stories of the world.