Silicon Valley Bank Incident: Asian depositors lost $13.9 billion!
On March 31, the Federal Deposit Insurance Corporation (FDIC) had informed SVB (Silicon Valley Bank) Cayman Islands branch depositors that they would not be covered by their deposit insurance and would be considered "general unsecured creditors". The branch's main customer group is Asian savers.
After the bankruptcy of Silicon Valley Bank, its high-quality assets were sold by the FDIC to First Citizen Bank. As a result, First Citizen Bank undertook the branches, loans and deposits of Silicon Valley Bank in the United States. However, the Cayman Islands branch was not included in the acquisition, and it remains under the direct jurisdiction of the FDIC. The reason is that the Cayman Islands (belonging to the United Kingdom) branch is a foreign branch and is not subject to US law.
According to Silicon Valley Bank's last annual report, as of the end of 2022, the bank had a total of $13.9 billion in overseas deposits that are not subject to any U.S. federal or state deposit insurance system. But as of today, the regulator has not disclosed how many deposits were made at its Cayman Islands branch at the time of SVB's bankruptcy.
The latest news is that the Wall Street Journal said that SVB's Cayman Islands branch's client funds have been completely confiscated by the FDIC.
Depositors who need to file claims with Silicon Valley Bank by July 10. But as bankruptcy liquidation enters the final process, it could mean that Asian depositors will lose money unavoidably.
Asian depositors have no one to back up their deposits, so they can only bear their own losses? What do you think about this? #Silicon Valley Bank Failure# #Reaping Global Wealth# #美国, Financial Crisis# #US Banking Crisis# #Global Economic Crisis# #American Finance# #The Future of America# #Type of American Company# #Boston Scientific# #Silicon Valley Stories# #International News# #Silicon Valley Boss# #America Is Not Paradise# #美国衰落了吗? # # America is in a hurry # #美国财经头条 #
