Americas Silicon Valley Bank: America is in danger of an economic crisis. The world’s most powerful 16th largest bank of America – Silicon Valley Bank has been ordered to be closed by the regulators. California’s Department of Financial Protection and Innovation has issued this order. Shares of the bank’s parent company SVB Financial Group fell by nearly 60% on 9 March. After this it was stopped for trading. This is the biggest failure in US history since the 2008 financial crisis.
SVB The reason for the fall in the shares of
US banks have lost $100 billion in the stock market in the last 2 days due to the fall of SVB’s shares. At the same time, European banks have suffered a loss of 50 billion dollars. The Federal Deposit Insurance Corporation (FDIC) announced on Friday a Silicon Valley bank takeover. Along with this, he has also been given the responsibility of keeping the money of the customers safe. Silicon Bank will now open on March 13, after which all insured depositors will have the freedom to withdraw their deposits.
2.5 Only the deposit amount of crore rupees will be returned.
The bank had assets of $209 billion and deposits of $175.4 billion by the end of 2022. 89% of this amount was not insured. Customer deposits up to $250,000 (Rs 2.5 crore) are covered by FDIC insurance. That is, even after the closure of the bank, this money will be returned to the customer. At the same time, there is no guarantee that the depositors who have deposited more than this amount in their accounts will get all their money back or not. However, the FDIC will issue a certificate to such customers. Under this, after the fund is recovered, the money will be returned to them first.
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