Some time ago, several US banks failed one after another, hitting the US banking industry hard. The U.S. Treasury, the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC) also responded in a timely manner, and after the collapse of the Silicon Valley Bank, the FDIC took over, depositors can still withdraw all their funds, and any losses related to the bankruptcy of the Silicon Valley Bank will not be borne by taxpayers. The collapse of the Silicon Valley Bank caused a financial panic, and the Federal Reserve came down in time to support depositors, which is indeed more neatly and beautifully, but the reality is still different.
Recently, the Wall Street Journal reported that the depositors' funds of the Cayman Islands branch of Silicon Valley Bank have been directly confiscated by the FDIC, and depositors from some institutions said that bank statements show that their deposit balances have directly returned to zero. These foreign depositors are in a completely different situation from those in the United States, and their deposits were protected after the FDIC announced its takeover of Silicon Valley Bank in March. Subsequently, the US branch of Silicon Valley Bank and loans and deposits were acquired by First Citizen Bank at the end of March, while the Cayman Islands branch of Silicon Valley Bank was not included, or the FDIC took over. But the FDIC directly confiscates deposits from overseas depositors, saying that the Federal Deposit Insurance Act states that only domestic deposits can be protected and funds held in foreign branches are not protected by deposit insurance.
Under normal circumstances, the branch is a branch of the head office overseas, once there is a problem, the head office must be the bottom, according to the legal relationship, the FDIC takes over the Silicon Valley Bank, naturally should also cover the branch, should also enjoy the same treatment as domestic depositors in the United States. However, the FDIC not only did not provide a back-up guarantee, but even directly took away the assets of the branch, which was very ugly. And Silicon Valley Bank has said that the establishment of a branch in this offshore tax haven is mainly to serve Asian customers, most of which are estimated to be Asian customers. The Cayman Islands is for the purpose of global tax havens, the tax rate is very low, the company establishment procedure is simple and very convenient, and the capital is also very free, which attracts a large amount of capital from all over the world into the Cayman Islands, and many capital is also registered in the Cayman Islands, especially Asian private equity funds like to deposit money in banks in the Cayman Islands. It is estimated that this time the FDIC directly confiscated the deposits of overseas depositors, and many Chinese tycoons were involved, and they avoided taxes and avoided their blood.
By the end of 2022, the bank had a total of US$13.9 billion (about 96.6 billion yuan) in overseas deposits, which means that the United States directly robbed nearly 100 billion yuan of overseas capital. Originally, the United States has been high-profile hype about the US government covering the Silicon Valley Bank, which has well maintained the credibility of Bank of America. But the FDIC's approach is directly exposed, that is, the overseas branches of US banks have no deposit insurance at all, not only no guarantee, but may even be directly confiscated, which is a "naked run" of the US bank credit system, and it is also a small shock from the capitalist empire to show the capital of various countries.
In recent years, the United States has indiscriminately issued US dollar money to raise interest rates, arbitrarily frozen and confiscated the sovereign assets of other countries, weaponized the US dollar, and weaponized the international settlement mechanism, which has long overdrawn the overall national credit of the United States, and the so-called "private property is sacred and inviolable" has become more and more ironic. This approach by the United States is completely fancy robbery, obtaining short-term benefits, but completely disregarding future reputation and credit, which is tantamount to digging its own grave.