As part of the U.S. government’s extraordinary measures to shield insured and uninsured depositors at Silicon Valley Bank from losses, foreign clients will also be protected, confirmed Treasury Secretary Janet Yellen.
The rescue package will be partly funded through special assessments levied on U.S. banks to recoup these losses and make customers whole.
Since the collapse of the Santa Clara-based financial institution, it has been reported that the bank had many Chinese funds and startups, including companies with ties to the Chinese Communist Party (CCP).
“Will my banks in Oklahoma pay a special assessment to be able to make Chinese investors whole from Silicon Valley Bank?” asked Sen. James Lankford (R-Okla.) during a Senate Finance Committee hearing on Thursday….