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Silicon Valley Bank Latest Update: The Silicon Valley Bank Crisis has now started engulfing others like an infection. Many startups around the world including America have started feeling its heat. Meanwhile, there is also apprehension that the crisis of 2008 may not repeat, when the entire banking world was shaken after the collapse of Lehman Brothers. To avoid such a situation, the American government and authorities have started pre-preparations.
so that other banks do not drown
According to a Bloomberg report, the US Central Bank Federal Reserve and the Federal Deposit Insurance Corp are pushing for the creation of a fund. Regulators think that this fund can be used to keep more deposits with banks, which are currently in a shaky state after the collapse of Silicon Valley Bank.
confidence building exercise
Regulators like the Federal Reserve and the Federal Deposit Insurance Corp believe that creating such a fund will instill confidence among people. This step will again restore the faith of the depositors on the banking system and will help in controlling the situation of chaos. For this, the regulators have also discussed with many executives of the banking world.
Bad condition of such banks
According to Bloomberg’s news, the sinking of the Silicon Valley Bank has made the situation especially worrying for those banks which are focused on venture capital and startups. Due to the sinking of Silicon Valley Bank, other such banks are also being affected. The Federal Reserve and the Federal Deposit Insurance Corp. are trying to stop this transition, and with this sponsorship, alternative fund plans are being prepared.
Biden also took information
This matter has become so serious that even US President Joe Biden has needed to intervene. President Biden spoke to California Governor Gavin Newsom the next day i.e. on Saturday after the news of the bank sinking. Both discussed about the sinking of SVB and measures to deal with the adverse situation arising out of it.
read this also: Relief to Indian startups from SVB crisis, these investors came as angels
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