Key Highlights :
1. The US President, Joe Biden, has reassured Americans that the US banking system is safe and vowed stricter bank regulation after a string of bank failures raised concerns about the nation's financial stability.
2. The failure of Silicon Valley Bank, last week, left many startups, tech companies, entrepreneurs and VC funds nervous and jittery.
3. California-based Silicon Valley Bank (SVB), the 16th largest bank in the United States, was closed on Friday by the California Department of Financial Protection and Innovation which later appointed the FDIC as its receiver.
4. The Biden administration has announced that depositors of the failed Silicon Valley Bank will have access to their money from Monday.
5. The bank failed after clients -- many of them venture capital firms and VC-backed companies that the bank had cultivated over time -- began pulling out their deposits, creating a run on the bank. After receiving recommendations from the boards of the Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve, and consulting with the president, US Treasury Secretary Janet Yellen on Sunday approved actions enabling the FDIC to complete its resolution of the Santa Clara, California-based Silicon Valley Bank (SVB) in a manner that fully protects all depositors.
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Continue Reading at Source : economictimes_indiatimes