Silicon Valley Bank, one of America’s largest banks, has been declared bankrupt. Due to this, the international companies that had deposits in it are in trouble. Some Asian technology companies claim to have deposits with the bank. Indian companies are also affected by this situation.
Silicon Valley Bank specializes in getting deposits and financing from startups and venture capital firms. Now that its shares have sunk to rock bottom and the bank has gone bankrupt, startups are suffering.
In this case, US President Joe Biden has assured the people of the country that the banking crisis is now under control.
Biden has said that investors in Silicon Valley Bank will get their money back, that there will be no loss to taxpayers, and that the money will come from the fees banks pay for deposit insurance.