The shutdown of Silicon Valley Bank, one of the leading lenders to the tech sector, marked the second-largest bank collapse in U.S. history and prompted a wider sell-off in stocks.[0] Fears of other banks being at risk of failure were further exacerbated when Treasury Secretary Janet Yellen said on CBS’ “Face the Nation” Sunday that the federal government won’t bail out the bank.[1]
Senator Mark Warner, a Democrat[2], a member of the Senate Banking Committee, said on ABC’s “This Week” that he’s “got a lot of faith that the overall system is quite strong” and that he wants the Federal Deposit Insurance Corporation (FDIC) to move “as aggressively as possible.”[3]
Former FDIC chair Sheila Bair said Sunday that finding a buyer for Silicon Valley Bank is the “best outcome” after it was shut down by regulators last week over concerns about its solvency.[4] Republican Rep. Nancy Mace (S.C.) also said on the Sunday show circuit that she wouldn’t support a bailout “at this time.”[5]
Thursday was a turning point for SVB, as depositors were alarmed and attempted to take out their funds due to worries about its financial situation.[3] Regulators seized the bank’s assets by Friday, making it the biggest bank to fail since the failure of Washington Mutual approximately fifteen years ago.[3] SVB provided services to technology workers and startups, including some of the most well-known names in Silicon Valley, for example, Roku.[3]
Sen. Tim Scott, R-S.C., expressed concern over the Biden administration’s decision to insure all deposits, including those over the $250,000 limit, which he believes would lead to corporate cronyism and send a negative message to the marketplace.[6]
On Tuesday, Warner introduced legislation that would enable the White House to oversee foreign-based apps, including TikTok, which was swiftly backed by bipartisan senators and the Biden administration.[3]
Warner replied, “Absolutely.”[3] Approximately 100 million Americans spend an average of 90 minutes daily on TikTok.[3] No matter what TikTok states, the data is located in China.[3] It is indeed true that TikTok can be utilized as a tool for propagating the Communist Party of China.[3] I believe that to be a national security concern.[3]
0. “Mace doesn’t support a bailout for Silicon Valley Bank” msnNOW, 12 Mar. 2023, https://www.msn.com/en-us/money/companies/mace-doesnt-support-a-bailout-for-silicon-valley-bank/ar-AA18wzh7
1. “Expert explains why it’s difficult for depositors to withdraw money from SVB” Crossroads Today, 12 Mar. 2023, https://www.crossroadstoday.com/news/national-news/expert-explains-why-its-difficult-for-depositors-to-withdraw-money-from-svb/video_76477bd5-38ba-56e1-90ae-7e6e29c3f6de.html
2. “Video: Sen. Mark Warner Comments on Silicon Valley Bank Collapse and How Tightly Mid-Sized Banks Should Be …” Blue Virginia, 12 Mar. 2023, https://bluevirginia.us/2023/03/video-sen-mark-warner-comments-on-silicon-valley-bank-collapse-and-how-tightly-mid-sized-banks-should-be-regulated-says-tiktok-absolutely-should-be-banned
3. “Senator says ‘see what happens’ before considering Silicon Valley Bank bailout” WBAL Radio, 12 Mar. 2023, https://www.wbal.com/article/607095/109/senator-says-see-what-happens-before-considering-silicon-valley-bank-bailout
4. “Former FDIC chair Bair says buyer for Silicon Valley Bank is the ‘best outcome’” AOL, 12 Mar. 2023, https://www.aol.com/news/former-fdic-chair-bair-says-140139493.html
5. “Menendez says he’s not ready to offer Silicon Valley Bank a bailout ‘by any stretch of the imagination'” msnNOW, 12 Mar. 2023, https://www.msn.com/en-us/money/companies/menendez-says-he-s-not-ready-to-offer-silicon-valley-bank-a-bailout-by-any-stretch-of-the-imagination/ar-AA18wxvJ?li=BBnbcA1
6. “Biden admin’s response to Silicon Valley Bank collapse is the ‘greatest form of corporate cronyism’: Tim Scott – FOX8” Fox8tv, 13 Mar. 2023, https://www.fox8tv.com/biden-admins-response-to-silicon-valley-bank-collapse-is-the-greatest-form-of-corporate-cronyism-tim-scott/
