Silicon Valley bank decision brings relief to startups after recession: Ashwini Vaishnav

With the US administration’s decision to prop up the failed Silicon Valley (SVB) despots, IT minister Ashwini Vaishnav said the developments are “reliable” and will bring relief to startups.

The Biden administration in the United States has announced that depositors of the failed Silicon Valley bank will be able to access their money from Monday. Federal regulators acted to uphold all SVB applications.

“SVB’s decision is reassuring. (It) will bring relief to startups,” Vaishnav told PTI.

US President Joe Biden on Monday sought to reassure Americans that he believes the US banking system is “safe” and vowed to tighten banking regulation after a series of bank failures. expressed concern about the country’s financial stability.

After receiving recommendations from the boards of the Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve System and consulting with the president, US Treasury Secretary Janet Yellen on Sunday approved actions that would allow the FDIC to successfully resolve the Santa Clara case. , California Silicon Valley Bank fully protects all depositors.

Shock waves from the Silicon Valley bank collapse continued to rattle global banking stocks, although demands from President Biden and regulators did little to quell broader market concerns.

However, the US administration’s stance has brought much-needed hope to startups struggling to recover deposits locked up at the Californian lender. The startups are working with Indian and international banks to transfer their funds after the US regulator makes the accounts available to depositors. Banks are in talks with start-ups to speed up account opening at the bank branches of International Financial Services Center in Gujarat. Startups that have worked with SVB but have accounts at other US banks want to transfer money.

The failure of a Silicon Valley bank last week sent shockwaves through many startups, tech companies, entrepreneurs and venture capital funds. SVB, the 16th largest bank in the United States, was shut down on Friday by the California Department of Financial Protection and Innovation, which then appointed the FDIC as receiver.

SVB is deeply embedded in the tech startup ecosystem and the default bank for many high-flying startups. Its collapse was one of the biggest bank failures since the 2008 global financial crisis. The bank grew over time – creating a run on the bank, returning its deposits.

The British government announced on Monday that it had helped HSBC, a major London-based bank, buy the British unit of Silicon Valley Bank for £1, securing deposits from more than 3,000 customers worth around £6. £.7 billion (about Rs. 67 million).

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