Some time ago, the bankruptcy of the Silicon Valley Bank in the United States, which attracted global attention, was a riot, and it had already been taken over, but only two months later, it exploded again: all deposits of overseas depositors were confiscated overnight! The forfeiture was carried out by the Federal Deposit Insurance Corporation (FDIC). The accident was a branch of Silicon Valley Bank in the Cayman Islands that opened overseas and was known as a "tax haven". What's more, many of the zeroed out are well-known companies from China.
The media exposed that the Cayman Islands branch of Silicon Valley Bank had a large number of Chinese depositors' deposits
Let's first take a look, after the bankruptcy of the Silicon Valley Bank in the United States, it was directly taken over by the FDIC, promising that all depositors of the local bank would be paid in full, please rest assured, and then found the First Republic Bank of the United States to be the assets of the Silicon Valley Bank as a takeover, and strive to resolve the hidden dangers of the bankruptcy incident and stabilize the current financial situation. At that time, it seemed that the money of Silicon Valley Bank was backed up, and everyone was relieved.
But — in recent days, the Wall Street Journal reported that a large number of depositors' deposits at the Cayman Islands branch of Silicon Valley Bank in the Cayman Islands, which have not been backed up, were recently confiscated directly by the FDIC. In fact, Silicon Valley Bank has branches in Canada, Switzerland, Germany, the United Kingdom and other European and American countries, and the branch in the Cayman Islands is fancy its function as a tax haven to absorb a large number of deposits from high-quality Asian customers. After the accident, the Cayman Islands branch was not within the scope of the acquisition of the First Republic Bank of the United States, and no other rescue measures were taken, in fact, the Cayman branch has been firmly controlled by the FDIC since the bankruptcy of the Silicon Valley Bank.
After the bankruptcy of Silicon Valley Bank broke out in March, in order to stabilize the financial order and avoid chaos caused by a large number of runs, the FDIC broke the past $250,000 insurance ceiling regulations, vowing to pay all depositors in full, which undoubtedly gave a reassurance to the overseas depositors of the Cayman branch, but never expected that this was just a delaying measure! On March 31, the FDIC issued a notice telling depositors at the Cayman branch: "You are generally unsecured creditors, not covered by FDIC deposit insurance, according to the US Federal Deposit Insurance Act, only US domestic deposits can enjoy protection, foreign branch deposits are not protected!" ”
Silicon Valley Bank
This shocking thunder blew up the depositors, really stunned! Doesn't it mean a good pocket? Isn't it a good contract spirit? Where are they? They hurriedly logged in to the bank website to check their accounts, and found that the deposits were all cleared, and the balance was directly 0! Already want to cry without tears, this is simply a clear robbery, what is the difference with robbers? It turns out that the bank in the United States is the biological son, and the overseas branch is only raised by the stepmother! It turns out that there is no spirit of contract, only the spirit of abandonment.
"Tax haven" Cayman Islands
Recently, the local media reported that the FDIC has confiscated and withdrawn all the deposit funds in the Cayman Islands, presumably to recover the country to rescue the scene. As for exactly how much deposits the Cayman Islands had, they did not disclose. However, according to the financial report disclosed by Silicon Valley Bank at the end of 2022, overseas deposits at the end of 2022 were 13.9 billion US dollars, which is equivalent to nearly 100 billion yuan! In the media investigation of China, some Chinese depositors told reporters that they had misled the statement that the FDIC had paid in full, and now they are regretting it and trying their best to recover the remaining deposits.
The media broke the news that Silicon Valley Bank had overseas deposits as high as $13.9 billion