Can the chaos from Silicon Valley Banks fall be contained?
- a portion of the uninsured deposits — to depositors this week and said more advances will be paid as assets are sold.The ideal situation is the FDIC finds a singular buyer of Silicon Valley Bank’s assets, or maybe two or three buyers.
- He said it was never the intention of Congress to protect business accounts with deposit insurance — that the theory was businesses should be doing their due diligence on banks when storing their cash.Protecting bank accounts to include businesses would require an act of Congress, Phillips said.
- Todd Phillips, a consultant and former attorney at the FDIC, said he expects that uninsured depositors will likely get back 85% to 90% of their deposits if the sale of the bank’s assets is done in an orderly manner.
- There have been multiple bidders for assets, but as of Sunday morning, the bank’s corpse remained in the custody of the U.S. government.Despite the panic from Silicon Valley, there are no signs that the bank’s failure could lead to a 2008-like crisis.
- It’s the second-largest bank failure in history, behind the collapse of Washington Mutual at the height of the 2008 financial crisis.Silicon Valley Bank was a unique creature in the banking world.
- The stock of First Republic Bank, a bank that serves the wealthy and technology companies, went down nearly a third in two days.
NEW YORK (AP) Can Washington come to the rescue of the depositors of failed Silicon Valley Bank? Is it even politically possible?That was one of the growing questions in Washington Sunday as policy [+6293 chars]