The US government is bailing out Silicon Valley Bank and Signature Bank, in a move to protect the depositors and confidence of the US banking system. Depositors will have access to all their money as of Monday 13 March, and the response has boosted cryptocurrency, including a seven percent rise in Bitcoin, and a 1.26 percent rise in Nasdaq pre-market. The UK government is also bailing out Silicon Valley Bank UK, and the Federal Reserve has also announced that it will make additional funding available to ensure depository institutions meet their obligations to depositors.
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Silicon Valley Bank gets bailed out
Silicon Valley Bank located in Santa Clara, California, has recently been bailed out by the government of the United States. The bank, which is a well-known bank in the tech industry, has been experiencing financial difficulties recently. However, the government has intervened to protect the depositors of the bank.
What is happening next?
The government has announced in a joint press release from the treasury, Federal Reserve, and FDIC that depositors will have access to all their money starting on Monday, March 13. This means that depositors will not lose any of their money. The government has also announced that no losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer.
What does this mean?
This bailout reassures people that their deposits are safe and that they will not lose any money. The government is taking steps to protect the US economy by strengthening public confidence in the banking system.
Crypto looking good
Cryptocurrencies are also looking good, with Bitcoin pushing up against 22,000. In the last 24 hours, the whole market is up 4%, but Bitcoin is up 7%, and Ethereum is up 8%, indicating bullish sentiment in the market.
Stock market’s up
The stock market is also up, with the NASDAQ up by 1.26%. This is great news for those investing in the stock market. It is also good news for the economy as a whole, indicating strong and sustainable economic growth.
Conclusion
The bailout of Silicon Valley Bank by the government has reassured people that their deposits are safe, and they will not lose any money. Cryptocurrencies are looking good, with Bitcoin pushing up against 22,000. The stock market is up, indicating strong and sustainable economic growth.
