Home » “U.S. Government Promises to Save Every Last Depositor at Silicon Valley Bank”

“U.S. Government Promises to Save Every Last Depositor at Silicon Valley Bank”

by Lisa Zheng

The U.S. government’s biggest financial regulators released a joint statement on Sunday promising to save every last depositor at Silicon Valley Bank (SVB). This includes those not fully covered by standard federal deposit insurance. Taxpayers will shoulder expenses as part of the resolution, while shareholders and “certain unsecured debtholders” will not be protected. Senior management has also been removed from their roles. A wide array of business leaders had called on the government to stem contagion from SVB’s failure, including Bill Ackman and Mark Cuban. Stablecoin issuer Circle, which had $3.3 billion of its USDC reserves within the firm, had also called for similar action. Jeremy Allaire, CEO of Circle, has confirmed that all USDC reserves are now secure and that SVB’s former reserves will now be transferred to BNY Melon. USDC now trades for $0.9943, almost back to its intended $1 peg price, and Bitcoin is back above $22,000 for the first time since Thursday.

The joint statement from the Federal Reserve, Treasury Department, and Federal Deposit Insurance Corporation has provided much-needed relief to the financial markets. The promise to save every last depositor at Silicon Valley Bank has been welcomed by business leaders and the public alike. Taxpayers will bear the cost of the resolution, while shareholders and “certain unsecured debtholders” will not be protected. Senior management has also been removed from their roles. Stablecoin issuer Circle was particularly impacted by the bank’s collapse, as it had $3.3 billion of its USDC reserves within the firm. However, Jeremy Allaire, CEO of Circle, has confirmed that all USDC reserves are now secure and that SVB’s former reserves will now be transferred to BNY Melon. As a result of the government’s intervention, USDC is now trading for $0.9943, almost back to its intended $1 peg price, and Bitcoin is back above $22,000 for the first time since Thursday.

The joint statement from the Federal Reserve, Treasury Department, and Federal Deposit Insurance Corporation has provided much-needed relief to the financial markets. The promise to save every last depositor at Silicon Valley Bank has been welcomed by business leaders and the public alike. It is a testament to the government’s commitment to protecting deposits and providing access to credit to households and businesses in a manner that promotes strong and sustainable economic growth. Taxpayers will bear the cost of the resolution, while shareholders and “certain unsecured debtholders” will not be protected. Senior management has also been removed from their roles. Stablecoin issuer Circle was particularly impacted by the bank’s collapse, as it had $3.3 billion of its USDC reserves within the firm. However, Jeremy Allaire, CEO of Circle, has confirmed that all USDC reserves are now secure and that SVB’s former reserves will now be transferred to BNY Melon. As a result of the government’s intervention, USDC is now trading for $0.9943, almost back to its intended $1 peg price, and Bitcoin is back above $22,000 for the first time since Thursday.

The joint statement from the Federal Reserve, Treasury Department, and Federal Deposit Insurance Corporation has

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