Article

2023-03-14 Economy

The American regulator transferred all deposits of SVB to the 'intermediate bank'

Direct Translation via Google Translate. Edited.
[RIA Novosti] The Federal Deposit Insurance Corporation (FDIC) transferred all deposits in the bankrupt Silicon Valley Bank (SVB), including uninsured ones, to the “bridge bank” created to protect depositors, follows from a press release from the regulator.

California regulators closed Silicon Valley Bank on March 10, the largest bank failure in the US since the 2008 financial crisis. The collapse of the SVB turned out to be associated with an increase in the discount rate of the Federal Reserve System ( FRS ) of the United States, which led to the depreciation of assets on the balance sheets of many financial institutions. In addition, the authorities closed the large New York Signature Bank due to systemic risks.

"The Federal Deposit Insurance Corporation (FDIC) today transferred all deposits - both insured and uninsured - from the former Silicon Valley Bank to a newly created, full-service FDIC-managed "intermediate bank" as part of an effort to protect all Silicon Valley bank depositors. Bank," the statement said.

According to the announcement, depositors will have full access to their money today when Silicon Valley Bank, NA, an intermediate bank, reopens and resumes activities, including internet banking. Savers and borrowers will automatically become Silicon Valley Bank, NA customers and receive customer service and access to their funds through ATMs, debit cards and check writing in the same manner as before, the FDIC said.
However, shareholders and some holders of unsecured debt will not be protected, the FDIC concludes.

A bridge bank is a bank that operates under the direction of a board of directors appointed by the FDIC. It assumes deposits and certain other liabilities and acquires certain assets of the failed bank.

Posted by badanov 2023-03-14 00:00|| || Front Page|| [13 views ] Top

#1 Some deeper diving.

The average salary of Svb Financial Group is $365,386 in the United States

SVB Financal Grp. Salaries

Related SVB Financal Grp Companies: American Mutual Fund, Bright House Networks, Aea investors lp, Clark Enterprises, inc., TPG, Aap Viii Aegis Holdings, L.P., Capital Income Builder, Investment co of America, American High Income Trust, Tarrant Capital IP, LLC, Western & Southern Mutual Holding company

Posted by NN2N1 2023-03-14 06:47|| 2023-03-14 06:47|| Front Page Top

#2 Music gear marketplace Reverb payments held up by SVB failure. Etsy and some other similar outfits having the same problems.

Posted by M. Murcek 2023-03-14 12:21|| 2023-03-14 12:21|| Front Page Top

#3 I'm no financial expert but I could never see the point in buying US government bonds. The return on investment always looked like it would be minimal. With inflation, and a one percent interest rate, it might actually be worth less at maturity than it was when it was purchased. And besides, it's just encouraging the bastards in Washington to borrow more money and increase the national debt. Makes no sense at all.

Posted by Abu Uluque 2023-03-14 13:07|| 2023-03-14 13:07|| Front Page Top

#4 Government controls interest rates and money supply; ALL other finance is dependent on those. You CAN’T win, all you can do is to guess how to lose less.

Posted by Glenmore 2023-03-14 14:59|| 2023-03-14 14:59|| Front Page Top

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