$14 Billion in Foreign Deposits at Silicon Valley Bank were NOT Bailed Out – More than $1 Trillion Foreign Deposits at Chase and Citibank as U.S. Debt Crisis Looms
Wow this is going to be a collapse of biblical proportions! Chaos is coming to the US financial system. From health impact news.
Comments by Brian Shilhavy
Editor, Health Impact News
The Wall Street Journal sent shock waves through the financial world Saturday night when they reported that the FDIC seized nearly $14 billion in foreign deposits at Silicon Valley Bank in the Cayman Islands last March, mostly from Chinese investment firms, which had been waiting to gain access to their funds.
It’s not happening.
Two months after the failure of Silicon Valley Bank, the lender’s depositors in the Cayman Islands have been left out in the cold.
The California-based bank’s American depositors were protected when the Federal Deposit Insurance Corp. took control of SVB on March 10 and guaranteed all of their funds. SVB’s U.S. branches, as well as its loans and deposits, were acquired by First Citizens Bancshares in late March.
It has been a vastly different story for customers of SVB’s Cayman Islands branch, which was left out of the First Citizens deal and placed under FDIC receivership. The branch in the offshore tax haven was set up to primarily support the bank’s activities in Asia, according to SVB. Its depositors, which include multiple Chinese investment firms, haven’t been able to access their funds—and have been in limbo since SVB’s collapse.
The FDIC’s notice surprised customers who had thought an earlier statement from U.S. regulators that said all SVB depositors would be made whole also applied to them.