That was a rough weekend in the American banking world. After the bankruptcy of Silicon Valley Bank (SVB), the US government bailed out another bank. The Ministry of Finance promises that customers will get their funds back. All this in order to avoid more panic in financial markets.
Last Friday, the SVB went bankrupt, as did the English branch of this bank. The latter has been sold (for one pound, literary) to the British bank HSBC, the British Ministry of Finance just announced.
“Customers of SVB VK will be able to access their funds again,” said a press statement.
This is good news for customers of the bank.
Customers of the bankrupt bank will have access to their funds again from today, which will be paid to them by the Federal Deposit Insurance Corporation (FDIC). That goes beyond the guarantee of savings up to an amount of 250,000 dollars, which is comparable to the European deposit guarantee system. That system means that savers from European banks get their savings back in the event of bankruptcy, up to an amount of 100,000 euros.
At the SVB, customers with higher credit are therefore also saved. The bank had almost 175 billion in savings under management at the end of last year. The reason for the drastic intervention is that the US government wants to prevent other US banks from getting into trouble.
“The American people and business community can have confidence that their savings will be available when they need it,” Biden tweeted. The crisis at the bank is the worst since the financial crisis in 2008.
