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The White House on the fall of the Silicon Valley bank and the caption: “This is not 2008”

The US bank Silicon Valley Bank, which has been under the control of the US authorities since this Friday due to “insolvency”, is an institution closely associated with the field of technology, which has suffered from the decline of this sector. | Fountain: EFE

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White House defended this Monday that the current situation with the collapse of Silicon Valley Bank (SVB) and Signature Bank is very different from what happened in 2008 with the financial crisis that arose from the collapse of the housing bubble in the United States. Joined.

“It’s not 2008,” White House press secretary Karine Jean-Pierre repeated several times in press statements aboard Air Force One.

The spokeswoman dismissed criticism from some members of the Republican opposition, such as controversial far-right MP Marjorie Taylor Green, who accused the Joe Biden government of bailing out banks and forgetting about Americans.

However, the leadership of the Republican Party in Congress did not react in any way to the decisions made by the president after the banks were closed.

Deposit Guarantee Plan

On Sunday evening, the Treasury Department, the Federal Reserve System (FRS) and the Federal Deposit Insurance Corporation (FDIC) announced a deposit protection plan Silicon Valley Bank California and SignatureBank from New York.

The money that will be used to guarantee the deposits of these institutions will come from a guarantee fund that US banks contribute to and will not be funded by taxpayer money, a White House spokeswoman said.

In response to the 2008 crisis, then-President George W. Bush (2001-2008) approved $700 billion in bailouts for banks and other financial sector services.

(As reported by EFE)


Source: RPP

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