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Saturday, June 10, 2023

Biden, California Government Meet to Discuss Silicon Valley Bank Collapse

Treasury Secretary Yellen met with regulators to discuss the biggest bank failure since 2008

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Hrishita Chatterjee
Hrishita Chatterjee
Covering culture and trending topics

UNITED STATES: US President Joe Biden had a brisk tete-a-tete with Gavin Newsom, California Governor, on Saturday in light of the Silicon Valley Bank collapse and the possible means to counter the situation with strategies, as the White House stated. Newsom said on Saturday, “Everyone is working with the FDIC to stabilise the situation as quickly as possible.”

The Silicon Valley Bank Financial Group faced a lot of financial crises, like rolling markets that left thousands of dollars stranded that essentially belonged to the companies and investors. 

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Treasury Secretary Janet Yellen met with banking regulators on Friday to discuss the sudden developments, according to the Treasury Department, and said the federal government was well-equipped to handle the situation.

According to the statement, Biden talked with Newsom about initiating an emergency declaration that he issued on Friday to strengthen California’s support base among the people in the federal government while it recuperates from the gruesome effects of chilly winters, floods, landslides, and mudslides.

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The statement said, “The President and the Governor also spoke about Silicon Valley Bank and efforts to address the situation.”

The Federal Deposit Insurance Corporation mentioned on Friday that the Silicon Valley Bank had been closed by the financial regulators, who had taken over the deposits. This marks the largest bank failure in the US after the global financial crisis that took place in the latter half of the 2000s. 

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Certain financial industry executives have been extremely distressed about the failure of the Silicon Valley Bank, which they believe could significantly impact the other US regional banks through a domino effect if regulators do not get hold of a buyer soon to protect the deposits that are still uninsured.

On Saturday night, Israeli Prime Minister Benjamin Netanyahu said, “I am closely monitoring the collapse of the American investment bank, Silicon Valley Bank, which has led to a major crisis in the high-tech world. From Rome, I have held talks with senior high-tech figures in Israel.”

Also Read: Biden to Consider Holding Immigrant Families in Detention: Reports


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