Following the failure of the Silicon Valley Bank, US President Joe Biden on Monday said that he is “firmly committed” to hold those responsible for the bank’s closure. “I’m firmly committed to holding those responsible for this mess fully accountable and to continuing our efforts to strengthen oversight and regulation of larger banks so that we are not in this position again,” he tweeted.
Biden had directed US Treasury Secretary Janet Yellen and National Economic Council Director to work with banking regulators to address problems at Silicon Valley Bank and Signature Bank.
“I’m pleased they reached a solution that protects workers, small businesses, taxpayers, and our financial system,” he added.
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The American people and American businesses can have confidence that their bank deposits will be there when they need them,the President said.
Silicon Valley Bank (SVB), a major US lender for venture capital-backed companies, was seized by California banking regulators on Friday. The Federal Deposit Insurance Corporation (FDIC) in its order said that the move is aimed “to protect insured depositors”.
The closure of SVB is seen as the largest bank failure since Washington Mutual during the peak of the 2008 financial crisis. According to a report by Associated Press (AP), the bank failed after depositors, mostly technology workers and venture capital-backed companies, began withdrawing their money from the bank.
Israel Prime Minister Benjamin Netanyahu warned of a deep crisis in the technology industry on Saturday following the implosion of Silicon Valley Bank, the second largest bank failure in the United States and said that he was "closely monitoring" the collapse.
On Sunday, Union Minister of State for Entrepreneurship, Skill Development, Electronics & Technology, Rajeev Chandrashekhar said that he will meet with India startups this week to assess the impact of Silicon Valley bank failure, adding the bank’s closure was “disrupting” startups across the world.