Schiff says there’s ‘profound concern in California’ over Silicon Valley Bank collapse

Rep. Adam Schiff (D-Calif.) mentioned on Sunday that there there may be “profound concern in California” in regards to the well being of the financial sector after the collapse of the Silicon Valley Financial institution.

Federal regulators seized the California-based financial institution on Friday, and put the establishment up for public sale over the weekend, a number of information companies reported. The closure of the financial institution despatched ripples into the tech-world as depositors had been not sure of how a lot cash they might get again.

“I’d add that additionally there’s profound concern in California, on condition that this sector is such an essential a part of our financial system, that’s the entrepreneurial sector,” Schiff instructed CNN’s Jim Acosta.

Schiff mentioned that one of the best consequence could be if one other financial institution takes over the Silicon Valley Financial institution’s property and portfolio. He mentioned essentially the most pressing precedence is ensuring folks get their paychecks in order that they might present their households.

Schiff additionally mentioned federal companies ought to look at the opportunity of pausing the rate of interest hikes by the Federal Reserve Board. He questioned whether or not different establishments can be in “jeopardy” on account of the curiosity hikes.

Treasury Secretary Janet Yellin and each Democrat and Republican lawmakers mentioned on Sunday that they oppose a possible bailout of Silicon Valley Financial institution.

Federal companies introduced on Sunday that Silicon Valley Financial institution clients will be capable of entry all of their cash beginning on Monday for free of charge to the taxpayer.  

The three companies mentioned of their joint assertion that the Federal Reserve will make further funding out there to eligible establishments “to assist guarantee banks have the flexibility to satisfy the wants of all their depositors.”