Report Reveals US Government’s $12.7 Billion Bailout for Wealthy Depositors During Banking Crisis
FDIC Reveals Unredacted Document: US Government Secures Silicon Valley Bank’s Top Depositors with $12.75 Billion Amid Collapse
The Federal Deposit Insurance Corporation (FDIC) has recently disclosed an unredacted document shedding light on the extraordinary measures taken by the US government to safeguard the deposits of Silicon Valley Bank’s (SVB) ten largest customers in the wake of its highly publicized collapse in March. This revelation came about inadvertently as the FDIC mistakenly released the complete version of the document following a Freedom of Information Act request made by Bloomberg.
Within this comprehensive document, the identities of the firms that received bailout assistance are unveiled, as well as the staggering amounts that surpassed the standard $250,000 FDIC protection limit per account.
Leading the list of recipients is stablecoin issuer Circle, whose deposits at SVB amounted to an impressive $3.3 billion. Notably, in March, Circle had announced that $3.3 billion out of the $40 billion supporting its stablecoin, USD Coin (USDC), had become temporarily entangled within the failed bank.
Included among SVB’s beneficiaries is venture capital behemoth Sequoia, managing a colossal $85 billion in assets, which held deposits totaling $1.1 billion.
The combined bailout sum provided to Silicon Valley Bank and its parent company, Silicon Valley Group, reached a substantial $4.6 billion.
Another prominent recipient on the roster is Kanzhun Limited, an online recruitment services firm, which had amassed an impressive deposit of over $902.87 million within SVB.
Claiming the sixth spot is Bill.com, a fintech firm based in California, which possessed a noteworthy balance of $761.10 million in deposits through SVB.
Ranking seventh is Altos Labs, a biotech research company that had entrusted SVB with a substantial sum exceeding $680.34 million.
Marqeta, a platform specializing in card issuing, also appears on the list with deposits surpassing $634.53 million.
Furthermore, SVB held approximately $420 million in deposits from streaming device provider Roku.
Finally, IntraFi, a firm offering FDIC-insured deposit solutions to large entities, concluded the list with a total balance of $410.85 million at SVB.
In summary, the US government stepped in to secure the deposits of Silicon Valley Bank’s ten wealthiest clients, guaranteeing a staggering sum of over $12.75 billion, effectively mitigating the impact of the bank’s collapse.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.
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