Fintech

Investors implore the government to step in after Silicon Valley Bank failure

  • Voices from tech and finance are increasingly calling for the federal government to push another bank to take over the failed Silicon Valley Bank to protect uninsured deposits.
  • Their main concern is that a failure to protect deposits over $250,000 could cause a loss of faith in other mid-sized banks.
  • Some observers called out the irony of the venture capital community calling for government aid after many VCs spurred their portfolio companies to withdraw money after SVB released a surprise statement about its financial situation on Wednesday night.

Big names in Silicon Valley and the finance sector are calling publicly for the federal government to push another bank to assume Silicon Valley Bank’s assets and obligations after the financial institution failed on Friday.

The Federal Deposit Insurance Corporation (FDIC) will cover up to $250,000 per depositor and may be able to begin paying those depositors as early as Monday.

But the vast majority of SVB’s customers were businesses that had more than that on deposit at the bank. As of December, more than 95% of the bank’s deposits were uninsured, according to regulatory filings. Many of these depositors are startups, and many are concerned that they will not be able to make payroll this month, which in turn could spark a wide wave of failures and layoffs in the tech industry.

Source

Veille-cyber

Share
Published by
Veille-cyber

Recent Posts

Cybersécurité et PME : les risques à ne pas sous-estimer

Cybersécurité et PME : les risques à ne pas sous-estimer On pense souvent que seules…

19 heures ago

Phishing : comment reconnaître une attaque et s’en protéger efficacement

Comment reconnaître une attaque de phishing et s’en protéger Le phishing ou « hameçonnage »…

4 jours ago

Qu’est-ce que la cybersécurité ? Définition, enjeux et bonnes pratiques en 2025

Qu’est-ce que la cybersécurité ? Définition, enjeux et bonnes pratiques en 2025 La cybersécurité est…

5 jours ago

Cybersécurité : Vers une montée en compétence des établissements de santé grâce aux exercices de crise

Cybersécurité : les établissements de santé renforcent leur défense grâce aux exercices de crise Face…

1 semaine ago

L’IA : opportunité ou menace ? Les DSI de la finance s’interrogent

L'IA : opportunité ou menace ? Les DSI de la finance s'interrogent Alors que l'intelligence…

2 semaines ago

Sécurité des identités : un pilier essentiel pour la conformité au règlement DORA dans le secteur financier

Sécurité des identités : un pilier essentiel pour la conformité au règlement DORA dans le…

2 semaines ago

This website uses cookies.